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Zip Code 32309: Rising Home Values and Ownership Trends in Tallahassee's University Neighborhood
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 32309, located in Tallahassee, Florida, has experienced significant shifts in homeownership, average home prices, and average rent prices over the past decade. This area, known for its proximity to Florida State University and the state capital, has seen a gradual transition in its housing market dynamics.
The homeownership rate in zip code 32309 has shown a slight decline from 82% in 2013 to 78% in 2022. Concurrently, average home prices have risen substantially, from $212,097 in 2013 to $360,629 in 2022, representing a 70% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. The steepest annual increase in average home prices occurred between 2020 and 2021, jumping from $291,992 to $321,501, a 10.1% rise in a single year.
Federal interest rates have played a significant role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1%, which corresponded with relatively stable homeownership rates in the zip code. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, we observe a slight dip in homeownership percentages. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in zip code 32309 has grown from 16% in 2013 to 22% in 2022, mirroring the decline in homeownership. Average rent prices have fluctuated during this period, starting at $1,356 in 2013, peaking at $1,398 in 2021, and then slightly decreasing to $1,311 in 2022. The overall population growth from 30,929 in 2013 to 33,042 in 2022 may have contributed to the increased demand for rental properties, supporting the upward trend in the renter percentage despite relatively stable average rent prices.
In 2023 and 2024, the housing market in zip code 32309 continued its upward trajectory. Average home prices reached $378,049 in 2023 and further increased to $390,897 in 2024, representing a 4.8% year-over-year growth. This trend occurred alongside a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest a continuation of the upward trend in average home prices for zip code 32309 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $450,000 by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $1,500 per month in the same timeframe.
In summary, zip code 32309 has experienced a gradual shift towards a higher percentage of renters, coupled with substantial increases in average home prices. The interplay between federal interest rates, population growth, and local economic factors has contributed to these trends. As the area continues to evolve, it's likely to see further increases in both home values and rental rates, potentially reshaping the demographic makeup of this Tallahassee neighborhood.
