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Average Home Values and Ownership in Zip Code 67144: Towanda's Resilient Housing Market
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
Towanda, located in zip code 67144 in Kansas, has experienced notable shifts in its housing market over the past decade. This small city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Towanda has shown a significant upward trend, increasing from 79% in 2013 to 88% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $126,174, which steadily climbed to $228,379 by 2022, representing an impressive 81% increase over nine years. This correlation suggests that despite rising home prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased local prosperity.
Federal interest rates have played a crucial role in shaping homeownership trends in Towanda. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates increased from 79% to 82%, likely due to more affordable financing options. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates continued to climb, reaching 88% in 2022. This suggests that other factors, such as local economic conditions or housing supply, may have outweighed the impact of rising interest rates on homeownership in this particular market.
The rental market in Towanda has experienced an inverse trend to homeownership. The percentage of renters decreased from 21% in 2013 to 12% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $998, peaking at $1,016 in 2015 before declining to $818 in 2022. This 18.8% decrease in average rent over nine years, coupled with the declining renter population, suggests a potential oversupply of rental properties or a shift in local housing preferences towards homeownership.
In 2023 and 2024, the housing market in Towanda continued to evolve. The average home price reached $237,668 in 2023 and slightly increased to $238,236 in 2024, showing a slowing rate of appreciation compared to previous years. This coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially dampening demand in the housing market.
Looking ahead, predictive models suggest that average home prices in Towanda may continue to rise, but at a more moderate pace. Over the next five years, we can expect average home prices to potentially reach around $260,000 to $270,000, assuming current economic conditions persist. Average rent prices, which have been volatile, may stabilize or see modest increases, potentially reaching $900 to $950 by 2029.
In summary, Towanda's housing market has been characterized by a strong shift towards homeownership, with rising home prices and declining rental rates. The market has shown resilience in the face of increasing interest rates, suggesting strong local demand for homeownership. However, the recent slowdown in home price appreciation and high interest rates may signal a more balanced market in the coming years.
