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Zip Code 32907: Rising Home Values and Ownership Trends in Palm Bay, 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 32907, located in Palm Bay, Florida, has experienced significant shifts in homeownership rates and property values over the past decade. This area has seen a notable increase in owner-occupied housing units, coupled with substantial growth in average home prices and average rent costs.
The homeownership rate in zip code 32907 has shown a consistent upward trend, rising from 79% in 2015 to 87% in 2022. This increase in homeownership coincides with a dramatic rise in average home prices. In 2015, the average home price was $128,510, which more than doubled to $307,525 by 2022. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or changing demographics in the area.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. During this period, homeownership increased from 79% to 84%. The low interest rates likely made mortgages more affordable, encouraging more residents to purchase homes. Even as interest rates began to rise more sharply in 2022 to 1.68%, homeownership continued to increase, reaching 87%, indicating strong local demand for housing.
Conversely, the percentage of renters in zip code 32907 has decreased from 21% in 2015 to 13% in 2022. Despite this decline in the renter population, average rent prices have generally increased. The average rent rose from $1,179 in 2015 to $1,198 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,335. This increase in rent prices despite a decreasing renter population could be attributed to overall property value appreciation in the area and increased demand for the limited rental inventory.
As of 2024, the average home price in zip code 32907 has reached $318,368, showing continued appreciation from the 2022 value of $307,525. This represents a 3.5% increase over two years. The federal interest rate in 2024 stands at 5.33%, significantly higher than the 1.68% rate in 2022. Despite this substantial increase in interest rates, home prices have continued to rise, albeit at a slower pace than in previous years.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 32907 may continue to appreciate, but at a more moderate rate. Over the next five years, average home prices could potentially reach around $350,000 to $375,000, assuming a conservative annual growth rate of 2-3%. Average rent prices may also continue to increase, potentially reaching $1,300 to $1,400 per month by 2029, factoring in historical growth patterns and the area's increasing property values.
In summary, zip code 32907 has demonstrated a strong trend towards homeownership, with a significant increase in both the percentage of owner-occupied homes and average home prices. Despite rising interest rates, the area has maintained its appeal to homebuyers. The rental market, while shrinking in terms of percentage of occupied units, has seen general increases in average rent prices. These trends point to a robust and desirable housing market in this Palm Bay zip code, with potential for continued growth in both home values and rental rates in the coming years.
