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Average Home Values and Ownership in Zip Code 42286: A Decade of Change in Trenton, Kentucky
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 42286, located in Trenton, Kentucky, has experienced notable 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 42286 has shown some variability over the years. In 2013, the homeownership rate stood at 67%. It reached a peak of 68% in 2016 before declining to 58% in 2020, the lowest point in the available data. By 2022, it had rebounded slightly to 64%. During this same period, average home prices in the area saw a consistent upward trend. In 2013, the average home price was $119,967. This figure rose steadily, reaching $215,394 by 2022, representing an increase of nearly 80% over nine years. This trend suggests that while home prices were rising, homeownership rates were generally declining, possibly indicating affordability challenges for potential buyers.
Federal interest rates play a significant role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.4%), homeownership rates in zip code 42286 remained relatively high, between 64% and 68%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we see a corresponding decline in homeownership rates, dropping to 58% in 2020 before slightly recovering.
Renter percentages in zip code 42286 have generally mirrored the inverse of homeownership rates. The renter-occupied percentage was 33% in 2013, reached a high of 42% in 2020, and then settled at 36% in 2022. Average rent prices have shown an overall increasing trend, albeit with some fluctuations. In 2013, the average rent was $562. It peaked at $829 in 2021 before slightly decreasing to $717 in 2022. This represents a total increase of about 28% from 2013 to 2022. The population of the zip code has also grown during this period, from 2,222 in 2013 to 2,885 in 2022, which may have contributed to the upward pressure on rent prices.
In 2023 and 2024, the housing market in zip code 42286 continued to evolve. The average home price reached $232,189 in 2023 and further increased to $243,282 in 2024, showing continued growth in property values. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market dynamics.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 42286 are likely to continue their upward trajectory over the next five years. Home prices are projected to increase at a moderate rate, potentially reaching around $275,000 to $290,000 by 2029. Average rent prices are expected to follow a similar trend, potentially rising to the $800-$850 range in the same period, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 42286 has experienced a general trend of increasing home values and rent prices over the past decade, with some fluctuations in homeownership rates. The area has seen population growth, which has likely contributed to housing demand. The interplay between rising home prices, fluctuating interest rates, and changing homeownership rates highlights the complex dynamics of the local housing market. As we move forward, continued growth in both home values and rent prices is anticipated, which may have implications for housing affordability and demographic composition in the area.
