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Zip Code 33705: Rising Home Values and Stable Ownership in St. Petersburg's Gulf-Adjacent Urban Hub
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 33705, located in St. Petersburg, Florida, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a shift in its residential landscape, with notable fluctuations in both ownership percentages and average home prices. The average rent prices have also shown an upward trend, reflecting the dynamic nature of the local real estate market.
The relationship between homeownership rates and average home prices in zip code 33705 reveals an interesting pattern. In 2013, the homeownership rate stood at 58%, with an average home price of $93,777. As average home prices steadily increased, reaching $202,659 by 2019, the homeownership rate slightly decreased to 57%. However, a surprising trend emerged from 2020 onwards. Despite the average home price soaring to $224,908 in 2020 and further to $348,027 in 2022, the homeownership rate actually increased, reaching 60% in 2022. This suggests that rising property values did not deter homeownership in this area, possibly indicating strong local economic factors or demographic shifts favoring home purchases.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 33705. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%. During this time, homeownership rates remained relatively stable at 54-58%. As interest rates began to rise, reaching 1.83% in 2018, homeownership surprisingly increased to 56%. The most dramatic shift occurred between 2020 and 2022, when interest rates fluctuated from 0.38% to 1.68%, coinciding with a significant increase in homeownership from 59% to 60%. This trend suggests that local factors may have outweighed the impact of rising interest rates on homebuying decisions in this zip code.
Renter percentages and average rent prices in zip code 33705 have shown their own distinct trends. In 2013, 41% of residents were renters, with an average rent of $1,167. As the renter percentage increased to 45% by 2015, average rent rose to $1,202. Interestingly, while the renter percentage remained stable at 45% through 2017, average rent continued to climb, reaching $1,257. By 2022, the renter percentage had decreased to 40%, yet the average rent remained elevated at $1,230. This suggests that despite a decrease in the proportion of renters, demand for rental properties remained strong enough to sustain higher rent prices.
In 2023 and 2024, zip code 33705 has seen further increases in average home prices, reaching $354,095 in 2023 and $361,274 in 2024. Concurrently, federal interest rates have risen significantly, standing at 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may present challenges for potential homebuyers in the near future.
Looking ahead, predictive models suggest that average home prices in zip code 33705 may continue to rise over the next five years, potentially reaching around $400,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,400 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 33705 has demonstrated resilience in homeownership rates despite rising home prices and fluctuating interest rates. The area has seen a general upward trend in both average home prices and rent, with recent years showing particularly strong growth in property values. The interplay between homeownership rates, rental markets, and economic factors presents a complex picture of a dynamic real estate environment in this St. Petersburg neighborhood.
