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Zip Code 34236: Rising Home Values and Shifting Ownership Patterns in Sarasota's Bayside Neighborhood
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 34236, located in Sarasota, Florida, is a coastal area known for its beautiful beaches and cultural attractions. This region has experienced significant changes in homeownership rates and property values over the past decade. The ownership percentage has shown an overall upward trend, while average home prices have seen substantial growth, particularly in recent years. Average rent prices have also increased, albeit at a more moderate pace.
The homeownership rate in zip code 34236 has generally increased from 2013 to 2022. In 2013, 55% of housing units were owner-occupied. This percentage rose to a peak of 62% in 2020 before settling at 58% in 2022. Concurrently, average home prices have shown a remarkable upward trajectory. In 2013, the average home price was $546,856. By 2022, this figure had more than doubled to $1,138,593, representing a 108% increase over nine years. The most dramatic rise occurred between 2020 and 2022, with average home prices surging by 54% in just two years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the increase in homeownership rates from 55% to 62%. The low interest rates likely made mortgages more affordable, encouraging home purchases. However, as interest rates began to rise sharply in 2022 to 1.68%, we observe a slight decline in homeownership to 58%, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages in zip code 34236 have generally decreased as homeownership rates increased. In 2013, 45% of housing units were renter-occupied, which decreased to 38% by 2020 before rising slightly to 42% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,368 per month. This figure rose to $1,507 in 2022, representing a 10% increase over nine years. The population in the zip code has also grown from 11,015 in 2013 to 13,969 in 2022, which may have contributed to increased demand for rental properties and subsequent rent increases.
Looking at the most recent data, average home prices in zip code 34236 continued to rise in 2023, reaching $1,148,651. However, in 2024, there was a slight decrease to $1,123,356, marking a 2.2% decline. This cooling in the housing market coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a slowdown in home price appreciation.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 34236 may experience a period of moderation or slight decline in the short term due to high interest rates. However, given the area's desirability and historical growth, prices are likely to stabilize and potentially resume an upward trajectory in the medium term. Average rent prices are expected to continue their gradual upward trend, driven by population growth and demand for housing in the area.
In summary, zip code 34236 has seen a significant increase in homeownership rates and average home prices over the past decade, with particularly strong growth in recent years. The relationship between low interest rates and increased homeownership is evident, as is the impact of rising rates on recent market cooling. Rent prices have also increased, though less dramatically than home prices. The area's continued popularity and population growth suggest ongoing demand for both owned and rented properties, albeit with potential short-term adjustments due to economic factors.
