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Zip Code 32408: Upper Grand Lagoon's Soaring Home Values and Ownership Rates
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
Upper Grand Lagoon, located in zip code 32408 in Florida, has experienced significant changes in its housing market over the past decade. This coastal community has seen a notable shift in homeownership rates, coupled with fluctuations in average home prices and rent costs. The area has demonstrated a clear trend towards increased homeownership, while average home prices have shown substantial growth, particularly in recent years.
The percentage of owner-occupied homes in Upper Grand Lagoon has steadily increased from 60% in 2013 to 72% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $176,415, which grew to $415,926 by 2022, representing a remarkable 135.8% increase over nine years. This correlation suggests that despite rising prices, more residents were opting for homeownership.
The relationship between federal interest rates and homeownership rates in Upper Grand Lagoon presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates continued to climb steadily. This trend contradicts the typical expectation that lower interest rates lead to increased homeownership due to more affordable financing options. The consistent increase in homeownership from 60% to 72% during this period, even as home prices rose, suggests that other factors beyond interest rates were influencing the local housing market.
As homeownership increased, the percentage of renters in Upper Grand Lagoon decreased from 40% in 2013 to 28% in 2022. Interestingly, average rent prices did not show a consistent downward trend despite the decreasing renter population. The average rent fluctuated over the years, starting at $1,209 in 2013, peaking at $1,383 in 2016, and settling at $1,268 in 2022. This suggests that the rental market remained relatively stable despite the shift towards homeownership, possibly due to factors such as tourism or seasonal rentals in this coastal area.
Looking at the most recent data, the average home price in Upper Grand Lagoon reached $428,309 in 2023, showing continued growth from the previous year. However, in 2024, there was a slight decrease to $424,040. This minor dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a slight cooling in the housing market.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $475,000 to $500,000 by 2029. For rent prices, a moderate increase is expected, potentially reaching an average of $1,400 to $1,500 per month in the same timeframe.
In summary, Upper Grand Lagoon has experienced a significant shift towards homeownership over the past decade, with a corresponding increase in average home prices. This trend persisted even during periods of low interest rates and rising home values. The rental market has remained relatively stable despite a decreasing renter population. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. Looking ahead, we can expect continued growth in both home prices and rents, though potentially at a more moderate pace than in recent years.
