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Zip Code 32835: Orlando's Housing Market Dynamics and Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 32835, located in Orlando, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of decreasing homeownership and increasing renter occupancy, coupled with rising average home and rent prices.
The ownership percentage in zip code 32835 has fluctuated over the years, with a notable decline from 42% in 2013 to 35% in 2019. This decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $125,119, which rose to $208,296 by 2019, representing a 66.5% increase. This inverse relationship suggests that rising home prices may have made homeownership less accessible for many residents in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2015, when interest rates were historically low (ranging from 0.11% to 0.13%), homeownership rates in zip code 32835 remained relatively stable around 40-42%. However, as interest rates began to rise from 2016 onwards, reaching 2.16% by 2019, homeownership rates declined to 35%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter percentage in zip code 32835 has shown a steady increase, rising from 57% in 2013 to 64% in 2019. This growth in the renter population correlates with an increase in average rent prices. In 2013, the average rent was $1,328, which increased to $1,423 by 2019, a 7.2% rise. The population of the zip code also grew during this period, from 44,092 in 2013 to 48,694 in 2019, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in zip code 32835 continued to rise significantly. The average home price reached $312,757 in 2023 and further increased to $319,264 in 2024. This represents a substantial 7.4% increase from 2022 to 2024. Concurrently, federal interest rates have also risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on the historical trends and current market conditions, we can anticipate continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 5-7% annually, potentially reaching around $420,000 by 2029. Average rent prices are expected to rise at a slightly slower rate of 3-5% per year, potentially reaching about $1,750 by 2029.
In summary, zip code 32835 has experienced a shift towards a renter-majority population, with homeownership rates declining as average home prices have risen substantially. The area has seen consistent population growth, which, combined with rising property values and rents, suggests a dynamic and evolving real estate market. The recent sharp increases in both home prices and interest rates may continue to shape the housing landscape in this Orlando neighborhood in the coming years.
