Zip Code 33881: Rising Home Values and Steady Ownership in Winter Haven, Florida
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 33881, located in Winter Haven, 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 population growth, with the number of residents increasing from 30,611 in 2010 to 39,629 in 2022, indicating a growing demand for housing in the region.
The homeownership rate in zip code 33881 has remained relatively stable, fluctuating between 66% and 68% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic increase. In 2010, the average home price was $101,026, which rose to $272,279 by 2022, representing a 169% increase over 12 years. This substantial appreciation in home values did not significantly impact homeownership rates, suggesting that other factors may have played a role in maintaining the balance between owners and renters.
Federal interest rates have shown a correlation with homeownership rates in this area. For instance, when interest rates were at historic lows between 2010 and 2015 (ranging from 0.1% to 0.18%), homeownership rates remained stable at around 67-68%. As interest rates began to rise from 2016 onwards, there was a slight dip in homeownership to 66% in 2016 and 2017, before recovering to 68% by 2020 when rates dropped again.
The renter population in zip code 33881 has consistently accounted for about 32-33% of the total households from 2013 to 2022. Average rent prices have shown a general upward trend, increasing from $930 in 2013 to $978 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,055, coinciding with a peak in population growth and a slight increase in the renter percentage to 33%.
In 2023 and 2024, we observe a continued increase in average home prices, reaching $277,785 in 2023 and $280,301 in 2024. This represents a more moderate growth rate compared to the sharp increases seen in previous years. Interestingly, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates since 2007.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in zip code 33881 will continue to rise over the next five years, albeit at a slower pace than the rapid growth seen between 2020 and 2022. Average rent prices are also likely to increase, driven by population growth and the overall appreciation of property values in the area. However, the rate of increase for both home prices and rents may be tempered by the higher interest rates, which could affect affordability and demand.
In summary, zip code 33881 has demonstrated resilience in its homeownership rates despite significant increases in average home prices. The area has experienced substantial population growth, which has likely contributed to the rise in both home values and rent prices. The interplay between federal interest rates, housing affordability, and population growth will continue to shape the housing market in this Winter Haven, Florida zip code in the coming years.
