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Zip Code 33870: Rising Home Values and Ownership Rates in Sebring's Raceway 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 33870, located in Sebring, Florida, has demonstrated interesting trends in homeownership, average home prices, and average rent prices over the past decade. This area has maintained a relatively stable homeownership rate while experiencing significant changes in both home values and rental costs.
The homeownership rate in zip code 33870 has remained relatively steady, with slight fluctuations between 67% and 72% from 2013 to 2022. Interestingly, the average home prices have shown a consistent upward trend during this period. In 2013, the average home price was $66,438, which steadily increased to $184,539 by 2022, representing a remarkable 177.8% increase over nine years. Despite this substantial rise in home values, the homeownership rate has not seen a corresponding decline, suggesting a resilient local real estate market and potentially strong economic conditions in the area.
Federal interest rates have played a role in homeownership trends in zip code 33870. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), the homeownership rate remained stable at around 69%. As interest rates began to rise from 2017 to 2019 (1% to 2.16%), there was a slight dip in homeownership to 67% in 2019. However, when interest rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rebounded to 69%. The most recent data from 2022 shows a further increase in homeownership to 72%, coinciding with a rise in interest rates to 1.68%, which might indicate other local factors influencing homeownership beyond just interest rates.
The renter population in zip code 33870 has fluctuated between 28% and 33% from 2013 to 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $861, which increased to $943 by 2022, representing a 9.5% increase over nine years. Notably, there was a significant jump in average rent from $833 in 2015 to $921 in 2016, a 10.6% increase in a single year. The population of the zip code has also seen changes, growing from 22,812 in 2013 to 23,431 in 2022, which may have contributed to the pressure on rental prices.
Looking at the most recent data, the average home price in zip code 33870 continued its upward trajectory, reaching $197,390 in 2023 and further increasing to $205,379 in 2024. This represents a 7% increase from 2022 to 2023 and a 4% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and home price growth.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 33870 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 $250,000 to $275,000, assuming a moderate annual growth rate of 4-6%. For average rent prices, we expect a continued upward trend, potentially reaching $1,100 to $1,200 per month by 2029, based on historical growth patterns and anticipated population changes.
In summary, zip code 33870 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has seen steady population growth and rising property values, indicating a robust local real estate market. While rent prices have also increased, they have done so at a slower pace than home prices. The recent sharp rise in interest rates may impact future trends, potentially slowing home price growth and affecting homeownership rates in the coming years.
