Loading Content...
Average Home Values and Ownership in Zip Code 55973: A Decade of Growth in Rural Minnesota
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 55973, located in Sargeant, Minnesota, is a small rural area with a population of 253 as of 2022. This zip code has experienced interesting shifts in homeownership rates and housing prices over the past decade. The area has maintained a high rate of owner-occupied housing, typically above 80%, while average home prices have shown a steady upward trend. Average rent prices, on the other hand, have fluctuated over the years.
The homeownership rate in zip code 55973 has remained relatively stable, with minor fluctuations between 2013 and 2022. In 2013, the ownership rate was 85%, which slightly decreased to 82% from 2014 to 2018. There was a brief increase to 84% in 2019, followed by a dip to 77% in 2020, before settling at 80% in 2022. Concurrently, average home prices have shown a consistent upward trend. From 2012 to 2022, average home prices rose from $113,811 to $267,390, representing a substantial increase of 135% over this period.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained stable at 82-85%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates showed some fluctuation but generally remained high, suggesting that other factors such as local economic conditions may have a stronger influence on homeownership in this area.
Renter percentages in zip code 55973 have generally been low, ranging from 14% to 23% between 2013 and 2022. The renter population saw a notable increase from 15% in 2019 to 23% in 2020, before settling at 19% in 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $732, which decreased to $537 in 2016. It then fluctuated, reaching $614 in 2019, before rising to $759 in 2022. This represents a 3.7% increase in average rent from 2013 to 2022, despite the fluctuations in between.
In 2023, the average home price in zip code 55973 reached $274,769, with the federal interest rate at 5.02%. Moving into 2024, the average home price further increased to $291,412, while the federal interest rate rose slightly to 5.33%. These figures indicate a continuing trend of rising home prices and interest rates in the area.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in zip code 55973 will continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, albeit at a slower rate, potentially reaching approximately $850 per month in the same timeframe.
In conclusion, zip code 55973 has demonstrated a strong preference for homeownership, with rates consistently above 80% despite rising home prices. The area has seen significant appreciation in home values, with prices more than doubling from 2012 to 2022. Despite some fluctuations, average rent prices have shown a modest overall increase. The resilience of homeownership rates in the face of rising prices and interest rates suggests a stable and desirable housing market in this rural Minnesota community. As we move forward, the trends indicate continued growth in both home values and rental prices, reflecting the area's sustained attractiveness to residents and potential investors.
