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Zip Code 34654: Rising Home Values and Shifting Ownership in Moon Lake, 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 34654, located in Moon Lake, Florida, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 34654 has remained relatively stable, with a slight decrease from 80% in 2013 to 79% in 2022. During this period, average home prices have shown a substantial increase. In 2013, the average home price was $125,801, which rose to $330,168 by 2022, representing a 162% increase over nine years. This significant appreciation in home values occurred despite the minor decline in homeownership rates, suggesting strong demand for housing in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 34654. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the area experienced a decrease in homeownership from 80% to 76%. This counterintuitive trend might be attributed to other local factors outweighing the impact of low interest rates. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized at 76-77%, possibly indicating that some residents rushed to purchase homes before rates increased further.
Renter percentages in zip code 34654 have shown a slight increase, moving from 19% in 2013 to 21% in 2022. This trend coincided with a rise in average rent prices, which increased from $1,108 in 2013 to $1,174 in 2022, representing a 6% increase over the period. The population growth from 22,323 in 2013 to 24,208 in 2022 likely contributed to the increased demand for rental properties, supporting both the rise in renter percentages and average rent prices.
In 2023 and 2024, the housing market in zip code 34654 continued to evolve. The average home price reached $338,759 in 2023 and further increased to $346,055 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 34654 may continue to rise over the next five years, potentially reaching around $400,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. Average rent prices are also expected to increase, potentially surpassing $1,300 per month within the same timeframe, driven by population growth and housing demand.
In summary, zip code 34654 has experienced a significant increase in average home prices, a slight decrease in homeownership rates, and a moderate rise in average rent prices over the past decade. The area has shown resilience in its housing market, with property values appreciating substantially despite fluctuations in interest rates and homeownership trends. As the population continues to grow, both the ownership and rental markets are likely to remain dynamic, with potential for further price increases in both sectors.
