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Zip Code 34240: Rising Home Values and Shifting Ownership Trends in Lakewood Ranch, Florida
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 34240, located in Lakewood Ranch, Florida, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a general trend of high homeownership rates, with fluctuations in average home prices and rent costs.
The homeownership rate in zip code 34240 has shown a slight overall decline from 2013 to 2022. In 2013, the homeownership rate stood at 90%, reaching a peak of 96% in 2020 before decreasing to 87% in 2022. Despite this recent decline, the area maintains a high proportion of owner-occupied homes. Average home prices in the zip code have shown a consistent upward trend, rising from $307,650 in 2010 to $736,198 in 2022, representing a substantial increase of 139% over this period.
Federal interest rates have played a role in homeownership trends in the area. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which coincided with the area's high homeownership rates. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, a slight decline in homeownership rates was observed, dropping from 96% in 2020 to 87% in 2022.
The renter population in zip code 34240 has shown a notable increase in recent years. The percentage of renters rose from 3% in 2013 to 13% in 2022, indicating a growing rental market in the area. This trend coincides with a significant increase in average rent prices, which rose from $1,241 in 2013 to $1,774 in 2022, representing a 43% increase. The population growth from 12,083 in 2013 to 15,096 in 2022 may have contributed to the increased demand for rental properties.
In 2023 and 2024, the average home prices in zip code 34240 continued to rise, reaching $762,714 in 2023 and $769,837 in 2024. This represents a 3.6% increase from 2022 to 2023 and a further 0.9% increase from 2023 to 2024. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in zip code 34240 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach around $850,000 by 2029. Average rent prices are also expected to increase, potentially reaching $2,000 per month by 2029, driven by population growth and increased demand for rental properties.
In summary, zip code 34240 has maintained high homeownership rates despite recent declines, while experiencing significant growth in property values. The area has also seen an increase in the renter population and average rent prices. These trends, coupled with rising interest rates, suggest a dynamic real estate market in this Florida zip code, with potential for continued growth in both home values and rental costs in the coming years.
