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Average Home Values and Ownership in Zip Code 46614: A Decade of Growth in South Bend, Indiana
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 46614, located in South Bend, Indiana, has experienced notable shifts in homeownership rates, average home prices, and average rent prices over the past decade. This area, covering approximately 56.99 square miles, has shown resilience and growth in its housing market, with interesting trends in both ownership and rental sectors.
The homeownership rate in zip code 46614 has seen a gradual increase over the years, rising from 72% in 2015 to 76% in 2022. This upward trend in homeownership coincides with a significant increase in average home prices. In 2015, the average home price was $110,310, which steadily climbed to $200,748 by 2022, representing an impressive 82% increase over seven years. This correlation suggests that despite rising home prices, more residents in the area have been able to transition into homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 46614. The period from 2015 to 2020 saw relatively low interest rates, ranging from 0.13% to 2.16%, which likely contributed to the increased homeownership rates during this time. For instance, as interest rates remained low at 0.38% in 2020, the homeownership rate peaked at 75%. This relationship demonstrates how lower interest rates can make mortgages more affordable, encouraging more people to buy homes.
Conversely, the rental market in zip code 46614 has shown some fluctuations. The percentage of renters decreased slightly from 27% in 2015 to 24% in 2022. However, average rent prices have shown an overall upward trend. In 2015, the average rent was $783, which increased to $835 by 2022, representing a 6.6% rise. It's worth noting that there was a significant spike in average rent to $988 in 2021, before moderating in 2022. These changes in rent prices and renter percentages may be influenced by factors such as local economic conditions and housing supply.
Looking at the most recent data, average home prices in zip code 46614 continued to rise, reaching $213,067 in 2023 and further increasing to $222,282 in 2024. This represents a 10.6% increase 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 may impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 46614 will continue to rise, potentially reaching around $260,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $950 by 2029, assuming the trend of the past few years continues.
In summary, zip code 46614 has demonstrated a robust housing market with increasing homeownership rates and rising average home prices. The area has shown resilience in its housing sector, with homeownership remaining strong even as prices have increased. The rental market, while experiencing some fluctuations, has also seen overall growth in average rent prices. As the area moves forward, it will be important to monitor how the recent increases in interest rates and home prices affect affordability and homeownership trends in this South Bend community.
