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Zip Code 33064: Analyzing Home Values and Ownership in Pompano Beach's Coastal Real Estate Market
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 33064, located in Pompano Beach, Florida, is a dynamic coastal area that has experienced significant changes in its real estate landscape over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns and shifts in the local housing market. From 2013 to 2022, the homeownership rate in zip code 33064 saw a notable decline. In 2013, 66% of residents were homeowners, but by 2022, this figure had dropped to 62%. This 4% decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $102,804, but by 2022, it had risen dramatically to $333,067, representing a 224% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
The federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at 66%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 62%. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
As homeownership declined, the percentage of renters in zip code 33064 increased from 34% in 2013 to 38% in 2022. This shift coincided with a rise in average rent prices. In 2013, the average rent was $1,353, which increased to $1,480 by 2022, representing a 9.4% increase. The population growth from 53,209 in 2013 to 58,950 in 2022 likely contributed to the increased demand for rental properties, putting upward pressure on rent prices.
In 2023 and 2024, the real estate market in zip code 33064 continued to evolve. The average home price reached $355,573 in 2023 and further increased to $371,863 in 2024, showing a steady upward trajectory. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in zip code 33064 are likely to continue their upward trend over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the shift towards renting. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, zip code 33064 has experienced a significant shift in its housing market dynamics over the past decade. The decline in homeownership rates, coupled with substantial increases in average home prices and moderate rises in average rent prices, reflects a changing landscape where housing affordability and accessibility have become increasingly important factors. The interplay between federal interest rates, population growth, and housing costs continues to shape the local real estate market, presenting both challenges and opportunities for residents and potential homebuyers in this Florida coastal community.
