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Zip Code 34606: Spring Hill's Resilient Housing Market Sees 244% Home Value Increase
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
Spring Hill, located in zip code 34606 in Florida, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a high rate of owner-occupied housing, with a gradual trend towards increased renting in recent years.
The homeownership rate in Spring Hill has shown a slight decline from 80% in 2013 to 77% in 2022. During this same period, average home prices have seen significant growth. In 2013, the average home price was $77,928, which steadily increased to $268,649 by 2022, representing a remarkable 244.7% increase over nine years. This trend suggests that while home prices have risen substantially, a large majority of residents have maintained homeownership, albeit with a slight decrease.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relative stability in homeownership rates around 76-78%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates remained steady at 75-76%. Interestingly, despite very low interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates slightly increased to 77%, possibly due to favorable borrowing conditions.
Renter percentages have shown a modest increase from 20% in 2013 to 23% in 2022. Correspondingly, average rent prices have risen from $936 in 2013 to $1,036 in 2022, an increase of 10.7%. This trend indicates a growing demand for rental properties, albeit at a slower rate compared to home price appreciation. The population growth from 25,559 in 2013 to 27,498 in 2022 may have contributed to the increased demand for both owned and rented housing.
In 2023, the average home price in Spring Hill reached $280,364, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $288,196, while interest rates have slightly risen to 5.33%. This continued upward trend in both home prices and interest rates suggests a robust housing market despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Spring Hill may continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Spring Hill has experienced substantial growth in average home prices, with a slight shift towards renting. Despite rising home values, homeownership rates have remained relatively high. The area has shown resilience in its housing market, with both home prices and rents increasing alongside population growth. The interplay between federal interest rates, housing prices, and ownership rates highlights the complex dynamics of the local real estate market.
