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Zip Code 32904: Rising Home Values and Stable Ownership in West Melbourne, 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 32904, located in West Melbourne, Florida, has experienced significant demographic and real estate changes over the past decade. This area has seen a steady increase in population and homeownership rates, coupled with fluctuating average home prices and average rent prices.
The homeownership rate in zip code 32904 has shown a notable increase from 76% in 2013 to 80% in 2022. This trend coincides with a substantial rise in average home prices, which grew from $160,552 in 2013 to $398,158 in 2022, representing a 148% increase over nine years. The relationship between homeownership rates and average home prices appears to be positive, with both metrics generally increasing over time. For instance, as the average home price rose to $275,322 in 2020, the homeownership rate also increased to 82%.
Federal interest rates have played a significant role in shaping homeownership trends in this area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the steady homeownership rates of around 76-77% during this time. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observe a slight increase in homeownership to 78% in 2018. Interestingly, despite a sharp drop in interest rates to 0.38% in 2020, homeownership rates reached their peak at 82%, possibly due to pandemic-related factors and increased housing demand.
The renter percentage in zip code 32904 has fluctuated inversely to homeownership rates, decreasing from 23% in 2015 to 20% in 2022. Despite this decrease, average rent prices have shown a general upward trend, rising from $1,311 in 2015 to $1,523 in 2022, an increase of about 16%. The population growth in the area, from 29,439 in 2015 to 38,001 in 2022, may have contributed to the increasing rent prices despite the lower percentage of renters, possibly due to heightened demand for rental properties.
In 2023 and 2024, the average home prices in zip code 32904 continued to rise, reaching $407,417 in 2023 and $408,900 in 2024. This represents a slight slowdown in price growth compared to previous years. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 32904 may continue to rise over the next five years, albeit at a more moderate pace due to the higher interest rate environment. Average rent prices are also expected to increase, driven by population growth and potential shifts in housing preferences. However, the rate of increase may be tempered by the area's high homeownership rates and any potential economic factors affecting housing demand.
In summary, zip code 32904 has demonstrated a strong trend towards homeownership, with rising average home prices and a growing population. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with periods of low interest rates generally coinciding with increased homeownership. The rental market, while smaller, has seen increasing average rents despite a declining percentage of renters. These trends, combined with recent data showing continued price growth and higher interest rates, suggest a dynamic and evolving real estate market in this West Melbourne zip code.
