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Zip Code 33716: Rising Home Values and Rental Dominance in St. Petersburg, 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 33716, situated in St. Petersburg, Florida, has undergone significant changes in its housing market and demographics over the past decade. This area has maintained a strong preference for renting, with consistently high renter percentages, while simultaneously experiencing substantial increases in both average home prices and rent values.
The homeownership rate in zip code 33716 has remained relatively low and stable, fluctuating between 19% and 22% from 2013 to 2022. Despite this consistency in homeownership, average home prices have shown a remarkable upward trajectory. In 2010, the average home price stood at $96,586, dropping to $78,135 in 2012 during the aftermath of the housing crisis. However, from 2013 onwards, there has been a steady increase in average home prices. By 2022, the average home price reached $205,529, representing a substantial 113% increase from 2010 levels.
Interestingly, the relationship between federal interest rates and homeownership rates in this zip code does not follow typical patterns. Despite historically low interest rates from 2010 to 2021, ranging from 0.08% to 2.16%, the homeownership rate remained low and relatively unchanged. This suggests that other factors, such as local market conditions or demographic characteristics, may have a stronger influence on homeownership in this area than interest rates alone.
Renter percentages in zip code 33716 have consistently been high, ranging from 77% to 81% between 2013 and 2022. This high proportion of renters aligns with the trend in average rent prices, which have steadily increased over the years. In 2013, the average rent was $1,093, and it rose to $1,355 by 2022, marking a 24% increase. The population growth in the area, from 14,265 in 2010 to 20,143 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
The most recent data shows that the average home price in 2023 was $208,762, indicating a slight increase from 2022. However, in 2024, there was a minor decrease to $204,633. This slight downturn coincides with a significant increase in federal interest rates, which rose from 5.02% in 2023 to 5.33% in 2024. These higher interest rates may be impacting home affordability and causing a slight cooling in the housing market.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 33716 will continue to rise, albeit at a more moderate pace than seen in recent years. The current high interest rates may temper rapid price growth. Average rent prices are also expected to increase, driven by the area's consistent population growth and high renter percentage. However, the rate of increase may slow if new rental inventory becomes available or if economic conditions change.
In summary, zip code 33716 has demonstrated a strong preference for renting over homeownership, with consistently high renter percentages. Despite this, both average home prices and average rent prices have shown significant increases over the past decade. The area's population growth, coupled with broader economic trends, has likely fueled these increases. While recent data suggests a potential cooling in the housing market, long-term trends indicate continued growth in both home prices and rents, albeit potentially at a more moderate pace.
