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Zip Code 33873: Rising Home Values and Declining Ownership in Lemon Grove, 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 33873, located in Lemon Grove, Florida, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 141.73 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in zip code 33873 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the area had a 69% homeownership rate, which decreased to 57% by 2019. However, there was a slight recovery to 62% by 2022. This trend coincides with significant changes in average home prices. The average home price in 2013 was $77,861, which steadily increased to $193,451 by 2022, representing a substantial 148% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in zip code 33873. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 68-70%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a noticeable decline in homeownership rates, dropping to 57% by 2019. The sharp decrease in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a slight rebound in homeownership to 62% by 2022, likely due to more favorable borrowing conditions.
Renter percentages in zip code 33873 have generally increased as homeownership rates declined. The renter-occupied percentage rose from 31% in 2013 to a peak of 43% in 2019, before slightly decreasing to 38% in 2022. Average rent prices have shown some volatility but with an overall upward trend. In 2013, the average rent was $804, which decreased to $733 in 2015 before rising again to $841 in 2021, and then slightly decreasing to $800 in 2022. The population fluctuations, from 13,434 in 2013 to 12,688 in 2022, may have influenced rental market dynamics, with changes in demand affecting rent prices.
In 2023 and 2024, the housing market in zip code 33873 continued its upward trajectory. The average home price reached $203,615 in 2023 and further increased to $216,753 in 2024, representing a 5.3% and 6.5% year-over-year growth, respectively. This growth occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $260,000 to $280,000 by 2029, assuming a moderate annual growth rate of 4-5%. Average rent prices might increase to approximately $900-$950 per month, factoring in historical volatility and the relationship with home prices.
In summary, zip code 33873 has experienced a general trend of declining homeownership rates and increasing average home prices over the past decade. Renter percentages have risen correspondingly, with average rent prices showing overall growth despite some fluctuations. The interplay between federal interest rates, population changes, and local economic factors has significantly influenced these housing market dynamics. As the area continues to evolve, monitoring these trends will be crucial for understanding the future of housing in this Florida community.
