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Average Home Values and Ownership in Zip Code 40107: A Decade of Growth and Volatility
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
Boston, located in Kentucky with the zip code 40107, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend towards increased homeownership and fluctuating average home and rent prices.
The ownership percentage in Boston has shown an upward trend, increasing from 76% in 2019 to 87% in 2022. This significant rise in homeownership coincides with a substantial increase in average home prices. In 2018, the average home price was $139,839, which rose steadily to $214,401 by 2022, representing a 53% increase over four years. This correlation suggests that despite rising home prices, more residents were able to transition into homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends. In 2020, when interest rates dropped to 0.38%, homeownership in Boston increased from 76% to 84%. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options. The continued low interest rates in 2021 (0.08%) corresponded with a further increase in homeownership to 85%.
Renter percentages in Boston have inversely mirrored the homeownership trend, decreasing from 24% in 2019 to 13% in 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2019, the average rent was $765, which spiked to $1,455 in 2021 before dropping back to $768 in 2022. This fluctuation in rent prices, particularly the sharp increase in 2021, may have motivated more renters to consider homeownership, contributing to the observed trends.
Looking at the most recent data, average home prices in Boston continued to rise in 2023 and 2024, reaching $216,911 and $222,861 respectively. This represents a modest but steady increase from 2022 levels. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the area has maintained its high homeownership rate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Boston will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $250,000 to $270,000, assuming current economic conditions persist. For rent prices, given their historical volatility, predictions are less certain. However, if the trend towards homeownership continues, we may see a stabilization or slight decrease in average rent prices, potentially settling around $800 to $900 per month by 2029.
In summary, Boston (40107) has demonstrated a strong trend towards increased homeownership, even in the face of rising home prices. The interplay between federal interest rates, home prices, and rent fluctuations has shaped a dynamic housing market in this Kentucky community. The area's resilience in maintaining high homeownership rates, despite recent interest rate hikes, suggests a robust local housing market with potential for continued growth in the coming years.
