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Average Home Values and Ownership in Denver's Zip Code 80230: A Decade of Dynamic Changes
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 80230, located in Denver, Colorado, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, coupled with a general upward trend in both average home prices and average rent prices. The interplay between these factors offers valuable insights into the local real estate dynamics.
The homeownership rate in zip code 80230 has shown notable variations from 2013 to 2022. In 2013, the ownership rate stood at 45%, gradually increasing to 55% by 2018. However, this trend reversed in recent years, with the ownership rate declining to 48% in 2022. Concurrently, average home prices have demonstrated a consistent upward trajectory. In 2010, the average home price was $452,800, which more than doubled to $914,645 by 2022, representing a substantial 102% increase over 12 years.
The relationship between federal interest rates and homeownership rates in this zip code reveals some interesting patterns. From 2013 to 2018, as interest rates remained relatively low (ranging from 0.11% to 1.83%), homeownership rates increased from 45% to 55%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, despite continued low interest rates in 2019-2021 (2.16% to 0.08%), homeownership rates began to decline, suggesting that other local factors were influencing the housing market.
Renter percentages and average rent prices in zip code 80230 have also shown notable trends. The renter-occupied percentage decreased from 55% in 2013 to 45% in 2018, before rising again to 52% in 2022. Average rent prices have generally increased over this period, rising from $1,599 in 2013 to $1,928 in 2022, a 20.6% increase. However, this increase was not linear, with fluctuations such as a drop to $1,272 in 2014 before rising again. The population growth from 9,667 in 2013 to 12,136 in 2022 likely contributed to the overall upward pressure on rent prices.
Looking at the most recent data, the average home price in zip code 80230 reached $887,062 in 2023 and slightly decreased to $873,635 in 2024. This represents a 3% decrease from 2022 to 2024, indicating a potential cooling in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may be influencing this shift in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 80230 may experience a period of stabilization or modest growth, given the recent slight decline and higher interest rates. Average rent prices are likely to continue their upward trajectory, albeit at a potentially slower rate, driven by population growth and housing demand in the area.
In summary, zip code 80230 has witnessed a complex interplay of factors affecting its housing market. The area has experienced substantial growth in average home prices over the past decade, coupled with fluctuations in homeownership rates. Recent data suggests a potential cooling in the housing market, possibly influenced by rising interest rates. Meanwhile, average rent prices have shown a general upward trend, reflecting the area's growing population and demand for housing. These trends underscore the dynamic nature of the local real estate market and its sensitivity to both local and broader economic factors.
