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Average Home Values and Ownership in Zip Code 42440: A Fluctuating Rural Kentucky 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 42440, located in Mortons Gap, Kentucky, is a small, rural area with a population that has fluctuated between 35 and 50 residents over the past decade. This zip code has experienced interesting shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 42440 has shown a general decline over the years, starting at 80% in 2014 and dropping to 72% by 2022. This trend coincides with a notable increase in average home prices. In 2019, the average home price was $64,531, which steadily rose to $80,093 by 2022, representing a 24% increase over just three years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2014 to 2020 saw relatively low interest rates, ranging from 0.09% to 2.16%. These low rates likely contributed to the initial high homeownership rates observed in 2014 and 2015. However, as home prices increased, even low interest rates couldn't offset the rising cost of homeownership for some residents.
The renter population in zip code 42440 has shown a corresponding increase as homeownership rates declined. The percentage of renters rose from 20% in 2014 to 28% in 2022. Interestingly, average rent prices have been relatively volatile during this period. They peaked at $731 in 2015, dropped to $639 in 2021, and then sharply increased to $756 in 2022. This 18% jump in average rent from 2021 to 2022 coincided with a slight increase in the renter population, possibly indicating growing demand for rental properties in the area.
In 2023, the average home price in zip code 42440 experienced a slight dip to $77,831, followed by a rebound to $80,609 in 2024. This recovery occurred despite a significant increase in federal interest rates, which rose from 5.02% in 2023 to 5.33% in 2024. The resilience of home prices in the face of higher interest rates suggests strong underlying demand in the local housing market.
Looking ahead, predictive models forecast a continued upward trend in both average home prices and rent prices over the next five years. Home prices are expected to reach approximately $90,000 by 2029, while average rent could approach $850 per month. These projections are based on the historical trends observed in the area and assume relatively stable economic conditions.
In summary, zip code 42440 has experienced a gradual shift from high homeownership to an increasing renter population, driven by rising home prices and changing economic conditions. Despite fluctuations in federal interest rates, the local housing market has shown resilience, with both home prices and rent prices trending upward. The forecasted continuation of these trends suggests that the area may see further changes in its housing landscape, with potential implications for community dynamics and local economic development.
