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Zip Code 32784: Rising Home Values and Ownership Rates in Umatilla, Florida
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 32784, located in Umatilla, Florida, has experienced significant fluctuations in homeownership rates and housing prices over the past decade. This area has shown resilience in its housing market, with a general trend towards increased homeownership and rising average home prices, despite some periodic fluctuations in both metrics.
The homeownership rate in zip code 32784 has shown an overall upward trend, increasing from 70% in 2016 to 81% in 2022. This substantial rise in homeownership coincided with a significant increase in average home prices, which grew from $124,397 in 2016 to $268,874 in 2022, representing a 116% increase over this period. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased local demand for homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. For instance, the period from 2016 to 2022 saw relatively low interest rates, ranging from 0.4% to 1.68%, which likely contributed to the increased homeownership rates. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. The sharp rise in homeownership from 75% in 2019 to 81% in 2022 coincided with a period of historically low interest rates, dropping from 2.16% in 2019 to as low as 0.08% in 2021 before rising to 1.68% in 2022.
Conversely, the renter percentage in zip code 32784 has shown a downward trend, decreasing from 30% in 2016 to 19% in 2022. Interestingly, this decline in the renter population has not led to a consistent decrease in average rent prices. The average rent fluctuated over this period, starting at $994 in 2016, dropping to $842 in 2019, and then rising again to $891 in 2022. These fluctuations in rent prices, despite the decreasing renter population, could be attributed to factors such as changes in housing quality, local economic conditions, or shifts in the types of rental properties available.
Looking at the most recent data, the average home price in zip code 32784 continued to rise, reaching $283,817 in 2023 and further increasing to $290,149 in 2024. This represents a 7.9% increase from 2022 to 2024, indicating a continued strong housing market in the area. However, it's important to note that federal interest rates have also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 32784 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project average home prices could reach approximately $325,000 to $350,000 by 2029. For average rent prices, we expect a moderate increase, potentially reaching $950 to $1,000 per month by 2029, assuming continued economic growth and demand for rental properties in the area.
In summary, zip code 32784 has demonstrated a strong trend towards increased homeownership and rising home values over the past decade. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with periods of low interest rates corresponding to increases in homeownership. While the rental market has seen a decrease in the percentage of renters, rent prices have remained relatively stable with some fluctuations. The recent rise in interest rates and continued increase in home prices suggest a potentially changing landscape for the housing market in this area, which will be important to monitor in the coming years.
