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Zip Code 32968: Rising Home Values and High Ownership Rates in Vero Beach South, 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
Vero Beach South, located in zip code 32968 in Florida, has experienced significant changes in homeownership rates and property values over the past decade. This coastal community has seen a notable increase in both average home prices and average rent prices, alongside fluctuations in the proportion of owner-occupied housing.
The homeownership rate in Vero Beach South has shown a general upward trend, rising from 88% in 2013 to 93% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $176,512, which steadily increased to $419,172 by 2022, representing a remarkable 137% increase over nine years. The most significant jump occurred between 2020 and 2022, with average home prices surging from $285,411 to $419,172, a 47% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the increasing homeownership rates, as mortgage financing became more affordable for potential buyers. The sharp rise in homeownership from 90% in 2019 to 93% in 2020 coincided with a drop in the federal interest rate from 2.16% to 0.38%, further illustrating this relationship.
As homeownership rates increased, the percentage of renters in Vero Beach South decreased from 12% in 2013 to 7% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent rose from $1,223 in 2013 to $1,736 in 2022, a 42% increase. Interestingly, there were some fluctuations in rent prices during this period, with a notable dip to $1,166 in 2016 before resuming its upward trajectory. The population growth from 14,082 in 2013 to 15,556 in 2022 may have contributed to the overall increase in rent prices despite the declining percentage of renters.
In 2023, the average home price in Vero Beach South reached $435,990, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $441,371, while the federal interest rate has risen slightly to 5.33%. These figures indicate a continuing upward trend in property values, even as interest rates have climbed significantly from their historic lows.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices could potentially reach the $500,000 mark within this period. Average rent prices are also expected to increase, potentially surpassing $2,000 per month within the next five years if current trends persist.
In summary, Vero Beach South has experienced a significant increase in homeownership rates, rising from 88% to 93% between 2013 and 2022. This trend has been accompanied by a substantial appreciation in average home values, more than doubling from $176,512 to $419,172 during the same period. Despite a decreasing percentage of renters, average rent prices have also shown an upward trend. The interplay between federal interest rates, population growth, and property values has shaped these trends, with the community poised for continued growth and increasing property values in the coming years.
