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Average Home Values and Ownership in Zip Code 67017: A Decade of Growth Despite Rising Interest Rates
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 67017, located in Benton, Kansas, presents an intriguing case study of housing trends in a small Midwestern community. Over the past decade, this area has experienced notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic changes.
The homeownership rate in zip code 67017 has shown a general upward trend, increasing from 81% in 2013 to 85% in 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2011, the average home price was $154,638, and by 2022, it had nearly doubled to $299,799, representing a 93.9% increase over 11 years. This substantial appreciation in home values suggests a strong demand for housing in the area, possibly driven by factors such as local economic growth or the area's attractiveness to new residents.
The relationship between federal interest rates and homeownership rates in zip code 67017 appears to follow the well-established trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates increased from 81% to 87%. However, even as interest rates began to rise more significantly from 2017 onwards, homeownership rates in this zip code remained relatively stable at 85%, indicating other factors may be influencing local homeownership trends.
Renter percentages in zip code 67017 have correspondingly decreased from 19% in 2013 to 15% in 2022, mirroring the increase in homeownership. Interestingly, average rent prices have shown considerable volatility over this period. In 2013, the average rent was $1,175, peaking at $1,392 in 2015 before declining to $895 in 2022. This 35.7% decrease in average rent from its peak suggests a potential oversupply of rental properties or a shift in local housing preferences towards homeownership.
In 2023 and 2024, average home prices in zip code 67017 continued their upward trajectory, reaching $312,062 in 2023 and $320,813 in 2024. This represents a 4.1% increase from 2022 to 2023 and a further 2.8% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 67017 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been volatile, may stabilize or see modest increases as the rental market adjusts to changing demand and supply dynamics.
In summary, zip code 67017 has experienced a notable increase in homeownership rates and average home prices over the past decade, despite recent increases in interest rates. The area has also seen a decrease in the percentage of renters and fluctuating average rent prices. These trends suggest a strong local housing market with a preference for homeownership, potentially driven by factors such as community desirability, economic opportunities, or changing demographics.
