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Average Home Values and Ownership in Zip Code 49004: Kalamazoo'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 49004, located in Kalamazoo, Michigan, has experienced notable shifts in homeownership rates and property values over the past decade. This area, spanning 21.98 square miles, has seen a general trend of increasing population and fluctuating housing dynamics.
The homeownership rate in zip code 49004 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 72%, gradually decreasing to 69% by 2015 and maintaining that level until 2020 when it increased slightly to 71%. This stability in homeownership coincided with a steady increase in average home prices. From 2013 to 2022, average home prices in the area rose significantly, from $100,781 to $196,073, representing a 94.5% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This low-interest environment likely contributed to the sustained homeownership rates and rising home prices. As interest rates began to increase from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in the zip code remained relatively stable, suggesting other factors were also influencing local housing dynamics.
Renter percentages in zip code 49004 have shown a slight increase over the years, moving from 26% in 2013 to 29% in 2022. This trend coincided with fluctuations in average rent prices. Average rent rose from $902 in 2013 to a peak of $964 in 2017, before declining to $859 in 2022. The population growth in the area, from 15,888 in 2013 to 17,205 in 2022, may have contributed to the increased demand for rental properties, despite the variations in rent prices.
In 2023 and 2024, the housing market in zip code 49004 continued its upward trajectory. Average home prices reached $204,996 in 2023 and further increased to $216,197 in 2024, representing a 5.5% year-over-year growth. This rise occurred despite a significant increase in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local market factors driving home values.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $250,000 by 2029. Average rent prices are expected to rise at a more moderate pace of 1-2% per year, potentially reaching close to $950 by 2029.
In summary, zip code 49004 has demonstrated resilience in its housing market, with stable homeownership rates and consistently rising average home prices despite fluctuations in interest rates. The area has seen a slight increase in renter percentages, coupled with variable rent prices. The recent surge in home values, even in the face of rising interest rates, suggests a robust local housing market with potential for continued growth in both home prices and rental rates in the coming years.
