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Average Home Values and Ownership in Zip Code 56560: A Decade of Change in Moorhead, 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 56560, located in Moorhead, Minnesota, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its proximity to the Red River and its vibrant community, has seen a gradual decline in homeownership while average home prices and rent have generally trended upward.
The homeownership rate in zip code 56560 has shown a declining trend from 2013 to 2022. In 2013, 65% of housing units were owner-occupied, but by 2022, this figure had decreased to 60%. During this same period, average home prices increased significantly, rising from $164,077 in 2013 to $258,463 in 2022, representing a 57.5% increase. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 65-66%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined to 60%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 56560 has grown correspondingly with the decline in homeownership. The percentage of renter-occupied housing units increased from 35% in 2013 to 40% in 2022. During this period, average rent prices also saw an overall upward trend, albeit with some fluctuations. The average rent rose from $900 in 2013 to $922 in 2022, peaking at $1,090 in 2018. This increase in both renter population and rent prices could be attributed to the growing population, which rose from 40,137 in 2013 to 44,881 in 2022, potentially increasing demand for rental properties.
In 2023 and 2024, the housing market in zip code 56560 continued to evolve. The average home price reached $266,480 in 2023 and slightly increased to $267,484 in 2024, showing a stabilization in home values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 56560 may continue to rise moderately over the next five years, potentially reaching around $290,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,100 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 56560 has experienced a gradual shift towards a higher proportion of renters, coinciding with rising average home prices and generally increasing rent costs. The interplay between federal interest rates, population growth, and housing market dynamics has shaped these trends. As the area continues to evolve, it will be important to monitor how these factors influence housing affordability and accessibility for both homeowners and renters in the coming years.
