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Average Home Values and Ownership in Zip Code 52327: Riverside, Iowa'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 52327, located in Riverside, Iowa, presents an intriguing case study of housing market dynamics in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 52327 has shown notable variations since 2013. Starting at 71% in 2013, it reached a peak of 77% in 2017 before declining to 69% in 2020. By 2022, the rate had recovered to 73%. These fluctuations coincided with substantial increases in average home prices. From 2013 to 2022, average home prices rose from $179,279 to $302,293, representing a remarkable 68.6% increase over this period. This trend suggests that while rising home values may have initially encouraged homeownership, the continued price escalation might have made purchasing a home more challenging for some residents in later years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 52327. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the increase in homeownership rates during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, we observed a slight decline in homeownership rates. This correlation underscores the impact of financing costs on housing market dynamics in the area.
Renter percentages in zip code 52327 have inversely mirrored homeownership rates, ranging from a low of 23% in 2017 to a high of 31% in 2020. Interestingly, average rent prices have not shown a consistent upward trend despite these fluctuations. Average rent peaked at $841 in 2018 before declining to $807 in 2022. This pattern suggests that rental prices in the area may be influenced by factors beyond simple supply and demand, such as local economic conditions or housing policies.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 52327, reaching $315,725 in 2023 and $325,747 in 2024. This represents a 7.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 52327 will continue to rise over the next five years, potentially reaching around $375,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices, however, are expected to show more modest growth, potentially stabilizing around $850-$900 per month by 2029, reflecting the less consistent historical trend in rental prices for this area.
In summary, zip code 52327 has experienced significant growth in average home prices over the past decade, with homeownership rates fluctuating in response to changing economic conditions and interest rates. The rental market has shown more stability in pricing despite variations in the percentage of renters. As the area moves forward, the interplay between rising home values, interest rates, and housing affordability will likely continue to shape the local real estate landscape.
