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Zip Code 33525: Rising Home Values and Ownership Rates in Pasadena Hills, 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 33525, located in Pasadena Hills, Florida, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in average rent prices.
The homeownership rate in zip code 33525 has shown a steady increase from 71% in 2017 to 78% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2017, the average home price was $192,174, which has since skyrocketed to $349,274 in 2022, representing an impressive 81.7% increase over five years. This correlation suggests that despite rising prices, more residents are choosing to invest in homeownership.
The relationship between federal interest rates and homeownership rates in this area is notable. From 2017 to 2020, as interest rates remained relatively low (ranging from 1% to 2.16%), homeownership rates increased from 71% to 74%. The trend continued into 2021 and 2022, with homeownership reaching 78% as interest rates dropped to historic lows (0.08% in 2021) before beginning to rise again (1.68% in 2022). This pattern aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in zip code 33525 has decreased from 29% in 2017 to 22% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. In 2017, the average rent was $987, which decreased to $827 in 2020 before rising slightly to $838 in 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, might indicate a shift in housing preferences or economic factors influencing the local rental market.
Looking at the most recent data, the average home price in zip code 33525 continued to rise, reaching $353,354 in 2023 and $358,955 in 2024. This represents a modest increase of 1.6% from 2023 to 2024. Notably, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 33525 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $400,000 to $425,000, assuming a conservative annual growth rate of 2-3%. For rent prices, we expect a gradual increase, potentially reaching an average of $900 to $950 per month by 2029, factoring in historical fluctuations and the area's increasing desirability.
In summary, zip code 33525 has demonstrated a strong trend towards increased homeownership and rising home values over the past decade. The area has shown resilience in its housing market, with consistent growth in average home prices even as interest rates have fluctuated. The rental market, while experiencing some price volatility, has seen a decrease in the percentage of renters. As we look to the future, the interplay between rising home prices, higher interest rates, and changing demographics will likely continue to shape the housing landscape in this Florida community.
