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Zip Code 32301: Rising Home Values and Shifting Ownership Patterns in Tallahassee's Urban Core
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 32301, located in Tallahassee, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend towards increased renting and rising property values, reflecting broader economic and demographic shifts in the region.
The homeownership rate in zip code 32301 has shown a gradual decline from 2013 to 2022. In 2013, 33% of residents owned their homes, but by 2022, this figure had decreased to 28%. This downward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $104,795, which rose steadily to reach $188,844 by 2022, representing an impressive 80% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates still declined from 33% to 30%. This suggests that other factors, such as rising home prices or local economic conditions, may have had a stronger influence on homeownership than interest rates alone during this period.
As the percentage of renters increased from 67% in 2013 to 72% in 2022, average rent prices also saw an upward trend. The average rent rose from $949 in 2013 to $996 in 2022, an increase of about 5%. However, this increase was not as dramatic as the rise in home prices, potentially making renting a more attractive option for many residents. The population growth in the zip code, from 29,392 in 2013 to 33,834 in 2022, likely contributed to the increased demand for rental properties.
In 2023 and 2024, the zip code has continued to see growth in average home prices. The average home price reached $200,379 in 2023 and further increased to $208,092 in 2024. This represents a 10.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 32301 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the area's growing population and the trend towards renting. However, the rate of increase may be moderated by the overall economic conditions and housing supply in the area.
In summary, zip code 32301 has experienced a shift towards renting, with a corresponding decrease in homeownership rates. This trend has occurred alongside significant increases in average home prices and more modest growth in average rent prices. The area's growing population and broader economic factors have played crucial roles in shaping these housing market dynamics. As we move forward, the interplay between interest rates, housing prices, and demographic changes will continue to influence the real estate landscape in this Tallahassee zip code.
