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Average Home Values and Ownership in Zip Code 76548: Fort Hood's Neighboring Real Estate Market
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 76548, located in Harker Heights, Texas, has experienced significant demographic and housing market changes over the past decade. This area, known for its proximity to Fort Hood, has seen a steady increase in population and evolving homeownership trends. The ownership percentage in zip code 76548 has shown a notable decline from 2013 to 2022. In 2013, homeowners constituted 62% of the population, but this figure dropped to 55% by 2022. Conversely, average home prices have demonstrated a strong upward trend. In 2013, the average home price was $180,899, which increased substantially to $306,976 by 2022, representing a 69.7% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 76548. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 62-63%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a gradual decline in homeownership rates, dropping to 60% by 2019. The sharp decrease in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse this trend, possibly due to economic uncertainties during the COVID-19 pandemic.
The renter percentage in zip code 76548 has increased from 38% in 2013 to 45% in 2022, mirroring the decline in homeownership. Average rent prices have fluctuated over this period, starting at $1,335 in 2013, dropping to a low of $1,180 in 2015, and then rising to $1,195 in 2022. The increase in the renter population, from approximately 10,473 in 2013 to 14,710 in 2022, may have contributed to the overall upward pressure on rent prices despite some yearly fluctuations.
In 2023, the average home price in zip code 76548 reached $308,682, showing a slight increase from 2022. However, in 2024, there has been a minor decrease to $304,403. This recent dip coincides with a significant rise in federal interest rates, which increased from 5.02% in 2023 to 5.33% in 2024. These higher interest rates may be affecting home affordability and buyer demand in the area.
Looking ahead, our predictive models suggest that average home prices in zip code 76548 may continue to experience moderate growth over the next five years, albeit at a slower pace than observed in recent years. We anticipate average home prices could reach approximately $330,000 to $340,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,400 per month in the same timeframe, driven by the growing renter population and overall housing demand in the area.
In summary, zip code 76548 has witnessed a shift towards a higher proportion of renters, coupled with substantial increases in average home prices over the past decade. The interplay between federal interest rates, housing affordability, and demographic changes has significantly influenced these trends. As the area continues to grow, balancing housing affordability with market demands will likely be a key challenge for local policymakers and real estate stakeholders.
