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Zip Code 33812: Soaring Home Values and Shifting Ownership in Highland City, 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
Highland City, located in zip code 33812 in Florida, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the dynamic real estate landscape of this community.
The homeownership rate in Highland City has shown a gradual decline from 2013 to 2022. In 2013, 84% of residents were homeowners, but by 2022, this figure had decreased to 72%. Conversely, the percentage of renters increased from 16% to 28% during the same period. This shift coincided with a substantial rise in average home prices. In 2013, the average home price was $143,742, but by 2022, it had more than doubled to $365,965, representing a 154% increase over nine years.
The relationship between federal interest rates and homeownership rates in Highland City follows a well-established trend. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained stable at around 81-84%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% by 2022, homeownership rates declined to 72%. This inverse relationship demonstrates how higher interest rates can make homeownership less affordable, potentially driving more residents towards renting.
As the renter population increased from 16% in 2013 to 28% in 2022, average rent prices also saw an upward trend. In 2013, the average rent was $1,230, which increased to $1,265 by 2022, representing a 2.8% rise. However, it's worth noting that rent prices fluctuated during this period, reaching a peak of $1,338 in 2019 before slightly decreasing. The population growth from 13,614 in 2013 to 15,187 in 2022 likely contributed to the increased demand for rental properties and the overall upward pressure on rent prices.
In 2023 and 2024, the housing market in Highland City continued to evolve. The average home price in 2023 was $377,772, showing a 3.2% increase from 2022. In 2024, the average home price further increased to $383,601, representing a 1.5% rise from the previous year. Notably, federal interest rates also experienced significant changes, rising to 5.02% in 2023 and further increasing to 5.33% in 2024. These higher interest rates may impact homebuying decisions and affordability in the area.
Looking ahead, predictive models suggest that average home prices in Highland City are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the rising proportion of renters in the community. However, the rate of increase may be moderated by the construction of new rental properties to meet the growing demand.
In summary, Highland City has experienced a shift towards a higher percentage of renters, accompanied by substantial increases in average home prices and moderate growth in average rent prices. The interplay between federal interest rates, homeownership rates, and housing costs has shaped the local real estate market, with recent trends pointing towards continued growth in both home values and rental demand in the coming years.
