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Average Home Values and Ownership in Zip Code 77084: A Decade of Growth in Houston's 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 77084, located in Houston, Texas, has experienced significant changes in its housing market over the past decade. This area has seen a gradual shift in homeownership rates and substantial increases in both average home prices and average rent prices, reflecting the dynamic nature of Houston's real estate landscape.
The homeownership rate in zip code 77084 has remained relatively stable, with minor fluctuations between 60% and 62% from 2013 to 2022. Despite this stability, average home prices have shown a remarkable upward trend. In 2010, the average home price was $122,634, which steadily increased to $271,061 by 2022, representing a 121% increase over 12 years. This substantial rise in home values did not significantly impact homeownership rates, suggesting that other factors, such as income growth or favorable lending conditions, may have helped maintain homeownership levels.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2010 to 2016, interest rates remained historically low, hovering below 0.5%. During this period, homeownership rates in zip code 77084 remained steady at around 60-62%. The low interest rates likely contributed to maintaining these homeownership levels by making mortgages more affordable for potential buyers. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates in the zip code showed resilience, remaining at 61-62%.
Renter percentages in zip code 77084 have shown a slight increase over time, moving from 37% in 2014 to 40% in 2022. This trend coincides with a steady rise in average rent prices. In 2013, the average rent was $1,320, which increased to $1,493 by 2022, representing a 13% increase over nine years. The population growth in the area, from 94,603 in 2010 to 113,900 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the housing market in zip code 77084 continued to evolve. The average home price reached $275,259 in 2023 and further increased to $276,965 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 77084 may continue to rise, potentially reaching around $300,000 by 2029, assuming a moderate annual growth rate of 2-3%. Average rent prices could also see continued growth, potentially reaching $1,700-$1,800 per month by 2029, based on the historical annual increase of about 1-2%.
In summary, zip code 77084 has demonstrated a resilient housing market with stable homeownership rates despite significant increases in average home prices. The area has also seen a gradual increase in the renter population and average rent prices, likely driven by population growth and increased housing demand. The interplay between federal interest rates, home prices, and rental market dynamics will continue to shape the housing landscape in this Houston neighborhood in the coming years.
