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Average Home Values and Ownership in Zip Code 50624: A Stable Rural Iowa 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 50624, located in Dike, Iowa, presents an intriguing case study of homeownership and housing market trends in a small Midwestern community. This area has maintained a consistently high rate of homeownership over the past decade, with slight fluctuations in average home prices and average rent values. The interplay between these factors offers insights into the local real estate dynamics and economic conditions.
The homeownership rate in zip code 50624 has remained remarkably stable, hovering around 84-88% from 2013 to 2022. This high rate of owner-occupied housing suggests a strong preference for homeownership in the community. Concurrently, average home prices have shown a steady upward trend. In 2014, the average home price was $184,238, which increased to $262,900 by 2022, representing a substantial 42.7% growth over eight years. This appreciation in home values indicates a robust local housing market, potentially driven by factors such as local economic stability or the area's desirability.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 50624. The period from 2014 to 2021 was characterized by historically low interest rates, ranging from 0.09% to 1.68%. These low rates likely contributed to maintaining the high homeownership rates in the area by making mortgages more affordable. For instance, even as average home prices rose to $235,731 in 2021, the homeownership rate increased to 88%, coinciding with a very low interest rate of 0.08% that year.
Renter percentages in zip code 50624 have remained relatively low, fluctuating between 12% and 16% from 2013 to 2022. Interestingly, average rent prices have shown some volatility during this period. The highest average rent was recorded in 2013 at $739, which decreased to $638 in 2015, before rising again to $729 in 2016. By 2022, the average rent had settled at $683. This fluctuation in rent prices, coupled with the stable and low renter percentage, suggests that the rental market in this zip code is relatively small and potentially influenced by factors such as local employment opportunities or housing availability.
In 2023 and 2024, zip code 50624 experienced continued growth in average home prices. The average home price reached $272,715 in 2023 and further increased to $279,058 in 2024. This represents a 6.1% increase from 2022 to 2024. Notably, this price appreciation occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests a strong underlying demand for housing in the area, potentially driven by local economic factors or the area's attractiveness to homebuyers.
Looking ahead, based on the historical trends and recent data, we can project continued growth in average home prices for zip code 50624 over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $300,000 to $320,000 by 2029. Average rent prices may also see a modest increase, potentially reaching $720 to $750 per month in the same timeframe, assuming the local economy remains stable and housing demand continues to grow.
In summary, zip code 50624 demonstrates a strong preference for homeownership, with consistently high owner-occupancy rates despite rising home prices. The area has shown resilience in its housing market, with steady appreciation in home values even in the face of recent interest rate hikes. While the rental market remains a small segment, it has shown some volatility in pricing. These trends collectively paint a picture of a stable, desirable community with a robust housing market poised for continued, albeit possibly moderated, growth in the coming years.
