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Zip Code 34201: Soaring Home Values and Ownership Rates in Lakewood Ranch, 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 34201, located in Lakewood Ranch, Florida, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a notable increase in owner-occupied housing, coupled with fluctuations in both home values and rental costs. The ownership percentage in zip code 34201 has shown a steady upward trend, rising from 79% in 2013 to an impressive 91% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $341,540, which grew to $664,051 by 2022, representing a 94.4% increase over nine years. This trend suggests a strong correlation between rising home values and increased homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite fluctuations in interest rates, the homeownership rate continued to climb. For instance, when interest rates were at a low of 0.08% in 2021, the homeownership rate was 89%. Interestingly, even as interest rates rose to 1.68% in 2022, the homeownership rate increased further to 91%. This suggests that factors beyond interest rates, such as local economic conditions or housing market dynamics, may have played a significant role in driving homeownership in this area.
Conversely, the percentage of renters in zip code 34201 has decreased from 21% in 2013 to 9% in 2022. During this period, average rent prices showed considerable volatility. The average rent peaked at $2,240 in 2015 before declining to $1,846 in 2022. Despite the overall decrease in the renter population, rent prices have remained relatively high, possibly due to the limited supply of rental properties in an area dominated by homeowners.
Looking at the most recent data, the average home price in zip code 34201 for 2023 was $677,657, showing a continued upward trend from 2022. In 2024, the average home price has further increased to $690,287. This persistent rise in home values occurs despite the significant increase in interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust housing market that has maintained growth even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 34201 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are expected to stabilize or increase moderately as the rental market adjusts to the limited supply of rental properties in an area with high homeownership rates.
In summary, zip code 34201 has demonstrated a strong trend towards homeownership, with a significant increase in average home prices over the past decade. The area has shown resilience in its housing market, maintaining growth even as interest rates have risen. The rental market, while shrinking in terms of population, has maintained relatively high average rents. These trends suggest a desirable and potentially competitive housing market in this Florida zip code, with a clear preference for homeownership among residents.
