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Zip Code 33161: Rising Home Values and Shifting Ownership Trends in North Miami
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 33161, located in North Miami, Florida, showcases a dynamic real estate landscape with notable shifts in ownership patterns and property values over the past decade. This area has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 33161 has shown a general decline from 2013 to 2019, followed by a slight rebound in recent years. In 2013, 46% of residents owned their homes, but this figure dropped to 38% by 2019. However, there has been a modest recovery, with homeownership reaching 41% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $110,697, which steadily increased to $261,221 by 2019. Despite the declining homeownership rate during this period, average home prices continued to rise, reaching $412,681 in 2022. This inverse relationship suggests that rising home prices may have contributed to the decreasing affordability for potential homeowners.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates in zip code 33161 decreased from 46% to 39%. However, as interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates stabilized at around 38-39%. Interestingly, the slight rebound in homeownership to 41% in 2022 coincided with a sharp increase in interest rates to 1.68%, suggesting that other local factors may have influenced this trend.
The renter population in zip code 33161 has shown an inverse trend to homeownership, increasing from 54% in 2013 to a peak of 62% in 2019, before slightly decreasing to 59% in 2022. This trend aligns with the rise in average rent prices, which increased from $1,067 in 2013 to $1,293 in 2022. The population in the zip code fluctuated during this period, peaking at 58,498 in 2017 before declining to 53,465 in 2022. The increasing renter percentage, despite population fluctuations, suggests a growing preference or necessity for rental housing in the area.
In 2023 and 2024, the real estate market in zip code 33161 continued to evolve. The average home price rose to $461,926 in 2023 and further increased to $497,837 in 2024, representing a significant jump from previous years. This surge in home prices occurred despite the Federal interest rates reaching 5.02% in 2023 and 5.33% in 2024, which are substantially higher than the rates seen in the previous decade.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Average home prices could potentially reach or exceed $600,000 by 2029, while average rent prices might surpass $1,500 per month. However, these projections should be considered in the context of broader economic factors and potential market fluctuations.
In summary, zip code 33161 has experienced a notable shift from homeownership to renting over the past decade, with a recent slight reversal of this trend. Average home prices have shown substantial growth, potentially impacting affordability for many residents. The rental market has expanded in response, with increasing average rent prices reflecting the growing demand. The area's real estate market demonstrates resilience and continued growth, even in the face of rising interest rates, suggesting strong underlying demand and economic factors supporting property values in this North Miami neighborhood.
