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Average Home Values and Ownership in Zip Code 72762: A Decade of Growth in Springdale, Arkansas
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 72762, located in Springdale, Arkansas, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in population and fluctuations in homeownership rates, coupled with substantial growth in average home prices and average rent prices.
The homeownership rate in zip code 72762 has shown an interesting trend, starting at 67% in 2013 and ending at 69% in 2022. During this period, average home prices have consistently increased. In 2013, the average home price was $154,589, and by 2022, it had more than doubled to $318,960. This significant increase in home prices didn't seem to deter homeownership, as the rate actually increased slightly over this period. Notably, there was a dip in homeownership to 62% in 2017 when average home prices were $190,637, but it rebounded in subsequent years despite continuing price increases.
Federal interest rates have played a role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the initial drop and subsequent recovery in homeownership rates. The low interest rates likely contributed to maintaining homeownership levels even as home prices rose. In 2021 and 2022, despite a slight increase in interest rates to 1.68%, homeownership reached its highest level at 69%, possibly due to accumulated savings during the pandemic and a desire for more space.
Renter percentages and average rent prices have also shown interesting trends. The percentage of renters decreased from 37% in 2016 to 31% in 2022. During this same period, average rent prices increased from $931 in 2016 to $1,024 in 2022. This suggests that despite rising rent prices, more residents were transitioning to homeownership. The population growth from 38,780 in 2016 to 45,588 in 2022 might have contributed to the upward pressure on both home prices and rent prices.
In 2023 and 2024, we've seen a continuation of the upward trend in average home prices, reaching $337,997 in 2023 and $350,374 in 2024. This represents a 9.9% increase from 2022 to 2024. Interestingly, this price growth has occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and price growth.
Looking ahead, based on the historical trends and current market conditions, we can expect average home prices in zip code 72762 to continue rising, albeit at a potentially slower rate due to higher interest rates. A 5-year forecast suggests average home prices could reach around $400,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,200 to $1,300 per month in the next five years, driven by population growth and overall housing market appreciation.
In summary, zip code 72762 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has seen substantial population growth, which has likely contributed to rising home and rent prices. While federal interest rates have recently increased, the long-term trend of rising home values and a preference for homeownership in this area seems set to continue, albeit potentially at a more moderate pace.
