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Average Home Values and Ownership in Zip Code 70809: A Decade of Growth in Baton Rouge
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 70809, located in Baton Rouge, Louisiana, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 70809 has shown a gradual increase over the years, rising from 53% in 2013 to 54% in 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $223,188, which steadily rose to $285,901 by 2022, representing a 28% increase over this period. The most significant jump occurred between 2021 and 2022, with average home prices rising from $265,198 to $285,901, a 7.8% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a noticeable increase in homeownership from 51% in 2017 to 54% in 2019. This trend suggests that despite rising interest rates, other factors such as local economic conditions and housing market dynamics were favorable for homeownership in this period.
Renter percentages in zip code 70809 have fluctuated inversely to homeownership rates, decreasing from 46% in 2013 to 45% in 2022. Interestingly, average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $1,165, which increased to $1,344 by 2022, representing a 15.4% rise over nine years. The most significant increase in rent occurred between 2013 and 2015, jumping from $1,165 to $1,290, a 10.7% increase in just two years. This trend in rising rent prices, coupled with the area's growing population (from 23,212 in 2013 to 25,857 in 2022), suggests a strong demand for rental properties despite the slight decrease in renter percentage.
Looking at the most recent data, the average home price in zip code 70809 reached $291,946 in 2023 and further increased to $292,232 in 2024. This represents a modest but continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in zip code 70809 to continue their upward trajectory, potentially reaching around $320,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For rent prices, the forecast suggests a continued increase, potentially reaching an average of $1,500 per month by 2029, reflecting the area's consistent population growth and housing demand.
In summary, zip code 70809 has demonstrated a resilient housing market with increasing homeownership rates and rising property values over the past decade. The area has seen steady population growth, which has supported both the rental and homeownership markets. Despite fluctuations in federal interest rates, the local housing market has shown consistent appreciation, suggesting strong underlying demand for housing in this Baton Rouge neighborhood. The coming years are likely to see continued growth in both home values and rental prices, reflecting the area's ongoing attractiveness to residents and investors alike.
