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Average Home Values and Ownership in Zip Code 56013: A Decade of Resilience in Blue Earth, 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 56013, located in Blue Earth, Minnesota, is a rural area spanning 169 square miles. Over the past decade, this community has experienced fluctuations in homeownership rates, average home prices, and average rent prices. The overall trend shows a slight decrease in homeownership, while average home prices have steadily increased, and average rent prices have shown moderate growth with some variability.
Examining the homeownership trends in zip code 56013, we observe a slight decline from 76% in 2013 to 76% in 2022. Despite this minor decrease, the area maintains a high rate of homeownership compared to national averages. Concurrently, average home prices have shown consistent growth, rising from $90,420 in 2013 to $147,715 in 2022, representing a 63.4% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates experienced a slight decline from 76% to 71%. However, as interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates stabilized around 70-72%. Interestingly, the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a slight increase in homeownership to 71% by 2021.
Renter percentages in zip code 56013 have shown a marginal increase from 24% in 2013 to 24% in 2022. Average rent prices have experienced more volatility, rising from $509 in 2013 to a peak of $673 in 2021, before slightly decreasing to $645 in 2022. This represents a 26.7% overall increase in average rent prices from 2013 to 2022. The population of the zip code has decreased from 4,617 in 2013 to 4,521 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, average home prices in zip code 56013 continued to rise, reaching $155,897 in 2023 and $157,422 in 2024. This represents a 6.6% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 56013 will continue to rise, potentially reaching around $180,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, possibly surpassing $750 per month within the same timeframe.
In summary, zip code 56013 has maintained a high homeownership rate despite slight fluctuations over the past decade. Average home prices have shown consistent growth, more than doubling from 2010 to 2024. The rental market has experienced moderate growth with some volatility in recent years. The community's declining population may continue to influence housing market dynamics. As interest rates have risen sharply in recent years, it will be crucial to monitor their impact on homeownership rates and housing affordability in this rural Minnesota zip code.
