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Zip Code 32303: Rising Home Values and Shifting Ownership Patterns in Tallahassee
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 32303, located in Tallahassee, Florida, has experienced notable shifts in its real estate landscape over the past decade. This area, spanning 40.08 square miles, has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 32303 has shown a gradual decline from 2013 to 2022. In 2013, 53% of housing units were owner-occupied, but by 2022, this figure had decreased to 51%. Concurrently, average home prices in the area have experienced substantial growth. In 2013, the average home price was $117,629, which steadily increased to $214,501 by 2022, representing an impressive 82.4% increase over nine years.
The trend between homeownership rates and federal interest rates reveals an interesting pattern. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 0.4%, homeownership rates in the zip code remained relatively stable, fluctuating between 50% and 53%. However, the slight decline in homeownership despite low interest rates suggests that other factors, such as rising home prices, may have offset the potential benefits of affordable financing.
Renter percentages in zip code 32303 have shown a corresponding increase as homeownership rates declined. The percentage of renter-occupied units rose from 47% in 2013 to 49% in 2022. Average rent prices have also seen an upward trend, albeit with some fluctuations. In 2013, the average rent was $1,088, which increased to $1,064 by 2022, representing a modest 2.2% decrease over the period. It's worth noting that rent prices peaked at $1,105 in 2021 before slightly decreasing in 2022.
Looking at the most recent data, the average home price in zip code 32303 reached $226,638 in 2023 and further increased to $234,401 in 2024. This represents a 9.2% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and potentially influence the balance between homeownership and renting in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 32303 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $275,000 to $290,000, assuming a moderate annual growth rate of 3-4%. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month by 2029, reflecting a steady annual growth of 2-3%.
In summary, zip code 32303 has experienced a slight shift towards renting, with homeownership rates declining from 53% to 51% between 2013 and 2022. Despite this trend, average home prices have surged by over 82% during the same period. The rental market has seen more modest growth in prices, with some recent fluctuations. The coming years may see continued growth in both home prices and rents, though the pace may be moderated by rising interest rates and overall economic conditions.
