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Zip Code 33868: Rising Home Values and Ownership Rates in Polk 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
Zip code 33868, located in Polk City, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a steady increase in population density, growing from 85.09 people per square mile in 2010 to 111.82 in 2022, indicating a growing demand for housing in the region.
The homeownership rate in zip code 33868 has shown a notable upward trend, increasing from 76% in 2015 to 83% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2015, the average home price was $133,418, which more than doubled to $314,881 by 2022. This correlation suggests that despite rising prices, more residents are choosing to invest in homeownership, possibly due to the area's growing attractiveness or favorable economic conditions.
Federal interest rates have played a significant role in homeownership trends. From 2015 to 2021, interest rates remained relatively low, ranging from 0.13% to 1.68%. This period of low interest rates corresponds with the increase in homeownership rates, as more affordable financing options likely encouraged home buying. The homeownership rate peaked at 83% in 2022, even as interest rates began to rise, suggesting a strong desire for homeownership in this zip code despite increasing borrowing costs.
Conversely, the percentage of renters in zip code 33868 has decreased from 23% in 2015 to 17% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. In 2015, the average rent was $1,235, which increased to $1,282 by 2022. This rise in rent prices, coupled with a decreasing renter population, could indicate a tightening rental market or an improvement in the quality of available rental properties.
As of 2024, the average home price in zip code 33868 has reached $331,855, showing continued growth from the 2022 figure. This increase occurs despite the federal interest rate rising to 5.33% in 2024, which is significantly higher than the rates seen in previous years. The persistence of rising home prices in the face of higher interest rates suggests strong underlying demand for housing in this area.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 33868 are likely to continue their upward trajectory over the next five years. Home prices are projected to increase at a moderate pace, potentially reaching around $380,000 by 2029. Average rent prices are expected to follow a similar trend, potentially approaching $1,500 per month in the same timeframe.
In summary, zip code 33868 has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The area has shown resilience to rising interest rates, maintaining strong home price growth. The rental market, while shrinking in terms of the percentage of renters, has seen steady increases in average rent prices. These trends, combined with the area's growing population density, suggest that zip code 33868 is likely to remain an attractive and potentially competitive housing market in the coming years.
