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Average Home Values and Ownership in Zip Code 40383: Versailles, Kentucky's Resilient Housing Market
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 40383, encompassing Versailles in Kentucky, is a locale renowned for its horse farms and bourbon distilleries. This area has witnessed significant changes in its housing market over the past decade, characterized by stable homeownership rates and consistently rising property values. The homeownership rate in zip code 40383 has maintained a steady level, ranging between 70% and 72% from 2013 to 2022. During this period, average home prices demonstrated a marked upward trend. In 2013, the average home price stood at $164,451, escalating to $290,386 by 2022. This represents a substantial increase of 76.6% over nine years, indicating a robust appreciation in property values while homeownership rates remained relatively constant. Federal interest rates have influenced homeownership trends in zip code 40383. Between 2013 and 2016, when interest rates were exceptionally low (0.11% to 0.4%), the homeownership rate held steady at approximately 70%. As interest rates began to climb more significantly from 2017 (1%) to 2019 (2.16%), there was a slight uptick in homeownership to 71%. This suggests that some residents may have been motivated to purchase homes before further rate increases. The subsequent drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) coincided with a minor decrease in homeownership to 70%, possibly due to economic uncertainties during the pandemic.
The renter population in zip code 40383 has experienced slight fluctuations, varying between 25% and 30% from 2013 to 2022. Average rent prices have generally increased during this timeframe, albeit with some variations. In 2013, the average rent was $839, rising to $888 by 2022, marking a 5.8% increase. Notably, there was a peak in average rent at $909 in 2021, followed by a slight decrease in 2022. This trend in rent prices, combined with the area's growing population (from 22,706 in 2013 to 24,453 in 2022), indicates a relatively stable rental market with moderate demand.
In 2023 and 2024, the housing market in zip code 40383 continued its upward trajectory. The average home price reached $304,810 in 2023 and further increased to $317,257 in 2024, representing year-over-year growth of 4.9% and 4.1% respectively. This growth occurred despite significantly higher interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong demand for homes in this area even in a higher-rate environment.
Looking ahead, based on historical trends and recent data, projections suggest continued growth in both home prices and rent in zip code 40383 over the next five years. Average home prices are expected to maintain an upward trajectory, potentially reaching around $370,000 by 2029. Rent prices are likely to follow a similar pattern, potentially increasing to approximately $980 per month. However, the rate of increase may moderate compared to recent years due to higher interest rates and potential market stabilization.
In summary, zip code 40383 has demonstrated a robust housing market characterized by stable homeownership rates, steadily increasing home values, and moderate growth in rent prices. The area's ability to maintain high homeownership levels despite rising prices suggests strong local economic factors and continued desirability of the region. The recent increases in home prices, even in the face of higher interest rates, further underscore the area's attractiveness to homebuyers.
