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Average Home Values and Ownership in Zip Code 55046: A Decade of Stability and Growth in Lonsdale, Minnesota
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 55046, located in Lonsdale, Minnesota, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a strong preference for homeownership, with a generally increasing trend in owner-occupied housing units.
The homeownership rate in zip code 55046 has remained consistently high, ranging from 84% to 89% between 2013 and 2022. The percentage of owner-occupied housing units increased from 84% in 2013 to 88% in 2022, indicating a strong preference for homeownership in the area. Concurrently, average home prices have shown a steady upward trend. In 2013, the average home price was $169,892, which rose to $341,752 by 2022, representing a substantial increase of approximately 101% over this period.
Federal interest rates have played a role in homeownership trends in zip code 55046. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%, which likely contributed to the increase in homeownership from 84% to 87% during this period. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained stable at around 86-89%, suggesting that other factors may have influenced homeownership decisions in this area.
The renter population in zip code 55046 has fluctuated over the years, with the percentage of renter-occupied housing units decreasing from 16% in 2013 to 12% in 2022. Despite this decrease, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,145, which increased to $1,305 by 2022, representing a 14% increase. The population of the area has also grown during this period, from 5,138 in 2013 to 5,636 in 2022, which may have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.
Looking at the most recent data, the average home price in zip code 55046 continued to rise, reaching $348,865 in 2023 and $358,607 in 2024. This represents a further increase of 4.93% from 2022 to 2024. Interestingly, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, suggesting strong demand in the area.
Based on the observed trends, we can forecast potential 5-year trends for average home and rent prices in zip code 55046. Assuming the current trends continue, we might expect average home prices to continue rising, potentially reaching around $400,000 to $425,000 by 2029. Average rent prices may also continue to increase, possibly reaching $1,500 to $1,600 per month in the same timeframe. However, these projections are subject to various factors, including economic conditions, local development, and changes in population dynamics.
In summary, zip code 55046 has demonstrated a strong preference for homeownership, with consistently high owner-occupancy rates. Average home prices have shown substantial appreciation over the past decade, even in the face of rising interest rates. While the renter population has decreased proportionally, average rent prices have still trended upwards, albeit at a slower pace than home prices. These trends suggest a robust and desirable housing market in the area, with continued growth potential in both the ownership and rental sectors.
