Loading Content...
Zip Code 32640: Hawthorne, Florida's Rising Home Values and Ownership Rates Defy Interest Rate Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 32640, located in Hawthorne, Florida, has experienced significant shifts in homeownership rates and property values over the past decade. This area, covering 254.16 square miles, has seen a notable increase in homeownership alongside fluctuating average home prices and rent rates.
The ownership percentage in zip code 32640 has shown a steady upward trend, rising from 76% in 2013 to 83% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $91,108, which more than doubled to $208,451 by 2022. This trend suggests a strong correlation between increasing property values and higher rates of homeownership in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 32640. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the increase in homeownership from 76% to 84%. The accessibility of affordable financing options likely contributed to this rise in homeownership. However, as interest rates began to climb in 2022 to 1.68%, there was a slight decrease in homeownership to 83%, indicating the potential impact of higher borrowing costs on property purchases.
Conversely, the percentage of renters in zip code 32640 has decreased over time, dropping from 22% in 2013 to 17% in 2022. Interestingly, average rent prices have shown significant fluctuations during this period. The average rent peaked at $877 in 2014, then experienced a general downward trend, reaching $655 in 2019. However, there was a sharp increase to $908 in 2021, followed by a decrease to $800 in 2022. These fluctuations in rent prices, coupled with the decreasing renter population, suggest a complex rental market influenced by various factors including local economic conditions and housing supply.
In 2023 and 2024, average home prices in zip code 32640 continued to rise, reaching $214,205 in 2023 and $220,995 in 2024. This upward trend in property values persisted despite the significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and could potentially slow the rate of price appreciation.
Looking ahead, predictive models suggest that average home prices in zip code 32640 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are expected to stabilize and potentially increase moderately, reflecting the area's growing population and the balance between homeownership and rental demand.
In summary, zip code 32640 has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the renter population. The interplay between federal interest rates, property values, and rental market dynamics has shaped these trends, creating a dynamic housing market in this Florida community.
