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Average Home Values and Ownership in Zip Code 42103: Bowling Green's Shifting Housing Landscape
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 42103, located in Bowling Green, Kentucky, 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 42103 has shown a gradual decline from 2013 to 2022. In 2013, 68% of housing units were owner-occupied, but by 2022, this figure had decreased to 61%. Conversely, the average home prices in the area have demonstrated a consistent upward trend. In 2013, the average home price was $185,252, and by 2022, it had risen to $324,661, representing a substantial increase of 75.3% over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, fluctuating between 67% and 69%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed a more pronounced decline, dropping from 68% in 2017 to 61% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 42103 has grown as homeownership rates have declined. The percentage of renter-occupied housing units increased from 32% in 2013 to 39% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $922, and it fluctuated over the years, reaching a peak of $1,024 in 2021 before slightly decreasing to $973 in 2022. The overall population growth in the zip code, from 21,228 in 2013 to 22,857 in 2022, may have contributed to the increased demand for rental properties, even as rent prices remained relatively stable.
Looking at more recent data, the average home price in zip code 42103 continued to rise, reaching $341,530 in 2023 and $349,405 in 2024. This represents a further increase of 7.6% from 2022 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 42103 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $400,000 by 2029. Average rent prices are also expected to increase moderately, potentially reaching around $1,100 per month in the same timeframe, driven by ongoing population growth and demand for rental properties.
In summary, zip code 42103 has experienced a shift towards a higher proportion of renters, coupled with substantial increases in average home prices. The interplay between rising property values, fluctuating interest rates, and population growth has shaped the local housing market. As the area continues to evolve, these trends are likely to have significant implications for housing affordability and accessibility in the coming years.
