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Average Home Values and Ownership in Zip Code 75007: A Decade of Change in Carrollton, Texas
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 75007, located in Carrollton, Texas, is a dynamic area that has experienced significant changes in its real estate landscape over the past decade. This suburban region, covering 11.9 square miles, has seen fluctuations in homeownership rates and notable increases in both average home prices and average rent prices.
From 2013 to 2022, the homeownership rate in zip code 75007 showed a slight decline, moving from 72% to 69%. During this same period, average home prices demonstrated a remarkable upward trend. In 2013, the average home price was $172,070, which steadily increased to $400,850 by 2022, representing a substantial 133% growth over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained relatively low, hovering between 0.09% and 0.40%. During this period, homeownership rates in zip code 75007 remained stable at around 71-72%. However, as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership rates to 70% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in zip code 75007 has also experienced notable changes. The percentage of renters increased modestly from 27% in 2013 to 31% in 2022. Concurrently, average rent prices rose from $1,417 in 2013 to $1,624 in 2022, an increase of about 14.6%. This growth in both renter population and average rent prices suggests a strong demand for rental properties in the area, possibly driven by those priced out of the homeownership market due to rising property values.
Looking at the most recent data, average home prices in zip code 75007 continued to rise, reaching $413,462 in 2023 and $422,765 in 2024. This represents a further increase of 5.5% from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the pace of home price appreciation and affect affordability for prospective buyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 75007 will continue to increase, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $500,000 to $550,000. For average rent prices, the upward trend is expected to persist, potentially reaching $1,900 to $2,000 per month by 2029.
In summary, zip code 75007 has experienced a notable increase in property values and rent prices over the past decade, coupled with a slight decrease in homeownership rates. The interplay between rising home prices, increasing interest rates, and growing rental demand has shaped a dynamic real estate market in this Carrollton, Texas neighborhood. As we look to the future, continued growth in both the housing and rental markets is anticipated, though the pace may be moderated by economic factors such as interest rates and overall market conditions.
