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Zip Code 33406: Rising Home Values and Shifting Ownership Patterns in Palm Springs, 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 33406, located in Palm Springs, Florida, showcases an intriguing real estate landscape characterized by fluctuating homeownership rates and rising property values. Over the past decade, this area has experienced significant changes in its housing market dynamics, reflecting broader economic trends and local demographic shifts.
The ownership percentage in zip code 33406 has shown a notable trend, decreasing from 66% in 2013 to 59% in 2017, before gradually increasing to 65% by 2022. This pattern correlates interestingly with average home prices, which have seen substantial growth. In 2013, the average home price was $121,571, and it rose consistently year over year, reaching $385,938 by 2022. This represents a remarkable 217% increase over nine years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have initially priced some potential buyers out of the market, leading to a decrease in ownership rates.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 33406. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 62%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight dip in homeownership rates to 59%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership rates to 63% and 65% respectively, likely due to more affordable financing options.
Renter percentages in zip code 33406 have mirrored the inverse of homeownership rates, peaking at 41% in 2017 before declining to 35% by 2022. Average rent prices have shown less volatility compared to home prices but still demonstrated an upward trend. In 2013, the average rent was $1,321, which fluctuated slightly over the years, reaching $1,288 in 2022. This represents a modest 2.5% decrease over nine years, which is notable given the significant increase in home prices during the same period. The population of the zip code has remained relatively stable, growing from 27,665 in 2013 to 28,107 in 2022, which may have contributed to the steadier rental market.
In 2023 and 2024, the housing market in zip code 33406 continued its upward trajectory. The average home price reached $405,882 in 2023 and further increased to $426,935 in 2024, representing a 10.6% growth over two years. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the continued rise in home prices suggests strong demand in the area.
Looking ahead, predictive models forecast a continuation of the upward trend in average home prices for zip code 33406 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $500,000 by 2029. Rent prices, which have shown more stability, are predicted to increase modestly, potentially reaching an average of $1,400-$1,500 per month in the same timeframe.
In summary, zip code 33406 has experienced a significant increase in property values over the past decade, with homeownership rates rebounding in recent years despite rising home prices. The rental market has remained relatively stable, with modest changes in average rent prices. The area's resilience in the face of fluctuating interest rates and its consistent population growth suggest a robust and desirable real estate market. As we move forward, the trends indicate continued appreciation in home values and a gradual increase in rental prices, making this zip code an area of interest for both homeowners and investors.
