Loading Content...
Zip Code 33487: Rising Home Values and Declining Ownership in Boca Raton's Dynamic Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 33487, located in Boca Raton, Florida, has experienced significant changes in its real estate market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 33487 has shown a gradual decline over the years. In 2013, 80% of residents were homeowners, but by 2022, this figure had decreased to 70%. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $282,563, and by 2022, it had risen dramatically to $637,811, representing a 125.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable at around 78%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline more noticeably, dropping to 70% by 2022.
The renter population in zip code 33487 has increased as homeownership has declined. In 2013, renters made up 20% of the population, which grew to 30% by 2022. This shift coincided with a steady increase in average rent prices. The average rent rose from $1,849 in 2013 to $2,177 in 2022, an increase of 17.7%. It's worth noting that the population in this zip code also grew significantly during this period, from 17,199 in 2013 to 21,591 in 2022, which likely contributed to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 33487 continued to rise, reaching $672,453 in 2023 and $696,403 in 2024. This represents a 5.4% increase from 2022 to 2023 and a further 3.6% increase from 2023 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 33487 to continue their upward trajectory, potentially reaching around $800,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $2,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 33487 in Boca Raton has experienced a shift towards more renters and fewer homeowners over the past decade, coinciding with substantial increases in both average home prices and average rent prices. The area has seen significant population growth, which has likely contributed to the increased demand for housing. Despite rising interest rates, home prices have continued to climb, suggesting strong demand in this desirable Florida location. As we look to the future, the trends indicate continued growth in both home values and rental prices, making this zip code an area of interest for both residents and investors in the real estate market.
