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Average Home Values and Ownership in Zip Code 68945: A Rural Nebraska Real Estate Analysis
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 68945, located in Heartwell, Nebraska, is a small rural area with a population that has fluctuated between 153 and 199 residents over the past decade. This zip code has experienced interesting shifts in homeownership rates and housing prices, providing a unique perspective on the local real estate market.
The homeownership rate in zip code 68945 has shown some variability over the years, with a general trend towards slight decline. In 2013, the homeownership rate was 75%, which increased to 79% in 2017 and 2019. However, by 2022, it had decreased to 74%. This overall decline in homeownership coincides with an increase in average home prices. The average home price in 2021 was $297,271, which rose significantly to $331,943 in 2022, representing an 11.7% increase in just one year.
Federal interest rates have played a role in homeownership trends in zip code 68945. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 1.83%. This likely contributed to the relatively high homeownership rates observed during this time. However, as interest rates began to rise in 2022 to 1.68%, we see a corresponding dip in homeownership rates from 77% in 2020 to 74% in 2022.
Renter percentages in zip code 68945 have shown an inverse relationship to homeownership rates, naturally. The renter-occupied percentage was 25% in 2013 and 2014, dropped to 19% in 2019, and then increased to 26% by 2022. Average rent prices have fluctuated over the years, with some correlation to renter percentages. In 2013, the average rent was $722, which increased to $775 in 2017 when the renter percentage was at 21%. Interestingly, as the renter percentage increased to 26% in 2022, the average rent actually decreased to $672, possibly due to increased rental supply or economic factors affecting the area.
Looking at the most recent data, the average home price in zip code 68945 reached $333,147 in 2023, showing a slight increase from 2022. However, in 2024, the average home price decreased to $327,191, representing a 1.8% decline. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in zip code 68945 may continue to experience modest growth, albeit at a slower pace than seen in recent years due to higher interest rates. Average rent prices are likely to stabilize or increase slightly as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, zip code 68945 has experienced a gradual decline in homeownership rates coupled with an overall increase in average home prices from 2021 to 2023. The rental market has shown inverse trends, with renter percentages increasing as homeownership declined. The recent rise in federal interest rates has begun to impact the housing market, as evidenced by the slight decrease in average home prices in 2024. These trends suggest a dynamic real estate market in this small Nebraska community, influenced by both local factors and broader economic conditions.
