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Zip Code 32439: Freeport's Soaring Home Values and High Ownership Rates Amid Population Boom
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
Freeport, Florida, zip code 32439, has experienced significant changes in its housing market over the past decade. This coastal city has seen substantial population growth, which has influenced its homeownership rates, average home prices, and rental market dynamics. The homeownership rate in Freeport has shown a notable increase from 2013 to 2022. In 2013, 74% of residents were homeowners, and this percentage rose to 80% by 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $173,108, which more than doubled to $410,406 by 2022. This significant appreciation in home values suggests a strong demand for housing in the area, likely driven by the growing population and the city's desirable coastal location.
The relationship between federal interest rates and homeownership rates in Freeport appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates increased from 74% to 79%. This correlation suggests that the low-interest-rate environment made mortgages more affordable, potentially contributing to the rise in homeownership.
Regarding the rental market, the percentage of renters in Freeport decreased from 26% in 2013 to 20% in 2022. Interestingly, average rent prices have fluctuated over this period. In 2013, the average rent was $1,060, which peaked at $1,286 in 2014 before declining to $1,011 in 2022. The decrease in the renter population, coupled with the fluctuating rent prices, might indicate a shift towards homeownership as the city's population grew from 8,148 in 2013 to 14,689 in 2022.
In 2023 and 2024, average home prices in Freeport have stabilized, with values of $412,777 and $412,681, respectively. This plateau in home prices comes as federal interest rates have risen significantly to 5.02% in 2023 and 5.33% in 2024, potentially dampening the rapid home price appreciation seen in previous years.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in Freeport. Average home prices are likely to continue their upward trajectory, albeit at a slower pace due to higher interest rates. We might expect average home prices to reach around $450,000 to $475,000 by 2029. For average rent prices, given the recent fluctuations and the trend towards homeownership, we might see a moderate increase to approximately $1,100 to $1,200 per month over the next five years.
In summary, Freeport's housing market has been characterized by strong growth in homeownership rates and average home prices over the past decade. The city's growing population and desirable location have likely contributed to these trends. While the rental market has seen some fluctuations, the overall shift has been towards homeownership. The recent stabilization of home prices and increase in interest rates may signal a new phase in Freeport's housing market, potentially leading to more moderate growth in both home prices and rents in the coming years.
