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Average Home Values and Ownership in Zip Code 70726: A Decade of Growth in Denham Springs
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
Denham Springs, located in zip code 70726 in Louisiana, has experienced significant changes in its housing market over the past decade. This area has seen a notable increase in homeownership rates, coupled with fluctuations in average home prices and rent costs.
The homeownership rate in zip code 70726 has shown a steady upward trend, rising from 73% in 2013 to 77% in 2022. This increase in homeownership coincides with changes in average home prices. In 2013, the average home price was $165,748, which gradually increased to $233,804 by 2022, representing a 41% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices rising from $195,219 to $233,804, a 19.8% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 70726. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership increased from 73% to 75%. As interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership continued to climb, reaching 78% in 2019. This trend suggests that despite rising interest rates, other factors such as local economic conditions and housing market dynamics may have supported increased homeownership in the area.
The rental market in zip code 70726 has shown an inverse relationship to homeownership trends. The percentage of renters decreased from 24% in 2013 to 23% in 2022. Average rent prices, however, have fluctuated over this period. In 2013, the average rent was $1,078, which decreased to $961 in 2015 before rising again to $1,088 in 2022. The highest average rent was recorded in 2021 at $1,220. These fluctuations in rent prices occurred against a backdrop of steady population growth, from 53,805 in 2013 to 61,039 in 2022, indicating a complex interplay between housing supply, demand, and demographic changes.
Looking at the most recent data, the average home price in zip code 70726 continued to rise, reaching $237,708 in 2023 and $240,716 in 2024. This represents a modest increase of 1.3% from 2023 to 2024. Notably, federal interest rates have also increased significantly, rising from 5.02% in 2023 to 5.33% in 2024. This upward trend in interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 70726 will continue to rise, albeit at a more moderate pace. By 2029, average home prices could reach approximately $260,000 to $270,000, assuming a continuation of current economic conditions and local market factors. For rent prices, the forecast suggests a potential increase to around $1,250 to $1,300 per month by 2029, reflecting ongoing population growth and housing demand in the area.
In summary, zip code 70726 has demonstrated a strong trend towards increased homeownership over the past decade, with average home prices showing substantial growth. The rental market has seen more fluctuation, both in terms of renter percentages and average rent prices. Recent increases in federal interest rates and continued growth in home prices suggest a potentially challenging environment for new homebuyers in the coming years, while the rental market may see moderate increases in costs. These trends reflect the dynamic nature of the housing market in Denham Springs and highlight the importance of monitoring both local and national economic factors in understanding future housing patterns.
