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Average Home Values and Ownership in Zip Code 77339: A Decade of Change in Houston's Real Estate
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 77339, located in Houston, Texas, has experienced significant changes in homeownership, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owner-occupied and renter-occupied housing, coupled with notable fluctuations in property values and rental costs.
The homeownership rate in zip code 77339 showed a slight increase from 63% in 2013 to 65% in 2020, before declining to 62% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $154,210, which steadily increased to $219,456 by 2020, aligning with the peak in homeownership. However, as average home prices continued to rise sharply to $291,213 in 2022, homeownership rates began to decline.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%) coincided with an increase in homeownership from 63% to 64%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 62% by 2022.
Renter percentages in zip code 77339 have shown an inverse relationship to homeownership rates, increasing from 32% in 2013 to 38% in 2022. This trend aligns with the rise in average rent prices, which increased from $1,497 in 2013 to $1,668 in 2022. The population growth in the area, from 39,602 in 2013 to 42,578 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in zip code 77339 continued to rise, reaching $297,177 in 2023 and $298,897 in 2024. This represents a slower rate of increase compared to previous years, possibly influenced by the significant jump in federal interest rates to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 77339 may continue to increase over the next five years, but at a more moderate pace. The rate of increase might slow down due to higher interest rates, potentially reaching around $320,000 by 2029. Average rent prices are likely to follow a similar trajectory, potentially increasing to approximately $1,900 by 2029, driven by population growth and the shift towards renting.
In summary, zip code 77339 has experienced a dynamic housing market over the past decade. The area has seen a recent trend towards renting, likely driven by rising home prices and interest rates. The interplay between homeownership rates, average home prices, and rental costs reflects the complex nature of the local real estate market, influenced by factors such as population growth, economic conditions, and federal monetary policy.
