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Average Home Values and Ownership in Zip Code 52765: Rural 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 52765, located in Big Rock, Iowa, is a rural area characterized by a stable community with fluctuating population trends. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices. The overall trend shows a slight increase in homeownership, rising from 77% in 2013 to 79% in 2022, while average home prices have seen significant growth, particularly in recent years.
Examining the relationship between homeownership rates and average home prices reveals interesting trends. From 2013 to 2022, the percentage of owner-occupied homes increased from 77% to 79%, while average home prices rose substantially from $167,738 to $289,768. This represents a 72.7% increase in average home values over the nine-year period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $230,177 to $289,768, a 25.9% increase in just two years.
Federal interest rates appear to have influenced homeownership rates in this zip code. From 2013 to 2016, when interest rates were exceptionally low (0.11% to 0.40%), homeownership increased from 77% to 81%. This aligns with the trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates stabilized at around 79-81%.
Renter percentages and average rent prices in zip code 52765 show an inverse relationship to homeownership trends. As homeownership increased, the percentage of renters decreased from 22% in 2013 to 21% in 2022. Average rent prices, however, experienced significant fluctuations. From 2013 to 2022, average rent prices rose from $650 to $815, an increase of 25.4%. Notably, there was a sharp decline in average rent in 2016 to $490, followed by a steady increase in subsequent years. The population decline from 531 in 2013 to 473 in 2022 may have influenced these rental market dynamics.
Looking at the most recent data, average home prices in zip code 52765 continued to rise in 2023 and 2024, reaching $292,376 and $305,225 respectively. This represents a 5.3% 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.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 52765 to continue their upward trajectory, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In conclusion, zip code 52765 has demonstrated resilience in its housing market despite population fluctuations. The most significant discoveries include the substantial increase in average home prices, particularly from 2020 to 2022, and the overall stability of homeownership rates. The inverse relationship between homeownership and rental percentages, coupled with the rising average rent prices, suggests a competitive housing market in this rural Iowa community. As interest rates continue to rise, it will be crucial to monitor their impact on homeownership rates and housing affordability in the coming years.
