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Average Home Values and Ownership in Zip Code 78109: A Decade of Growth and Recent Stabilization
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 78109, located in Converse, Texas, has experienced significant growth and changes in its housing market over the past decade. This area has seen a notable increase in homeownership rates and fluctuations in average home and rent prices, reflecting the dynamic nature of its real estate landscape.
The percentage of owner-occupied homes in zip code 78109 has shown a steady upward trend, increasing from 67% in 2014 to 75% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2014, the average home price was $134,108, which rose dramatically to $263,827 by 2022, representing a 96.7% increase over eight years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 78109. The period from 2014 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership from 67% to 74% during this time, as more affordable financing options became available to potential buyers. The sharp rise in interest rates to 1.68% in 2022 and 5.02% in 2023 may explain the slight plateau in homeownership rates at 75% in 2021 and 2022.
As homeownership rates increased, the percentage of renters in zip code 78109 naturally decreased, falling from 33% in 2014 to 25% in 2022. Despite this decrease in the renter population, average rent prices showed an upward trend. The average rent price rose from $1,284 in 2014 to $1,398 in 2022, an increase of 8.9%. This trend suggests that even with a smaller renter pool, demand for rental properties remained strong, possibly due to the area's growing population, which increased from 38,468 in 2014 to 51,296 in 2022.
Looking at the most recent data, the average home price in zip code 78109 reached $265,326 in 2023, showing a slight increase from 2022. However, in 2024, there was a minor decline to $259,992. This recent dip could be attributed to the significant rise in interest rates, which reached 5.33% in 2024, potentially cooling the housing market slightly.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 78109 to continue their overall upward trajectory, albeit at a more moderate pace due to higher interest rates. Average home prices may reach around $290,000 to $300,000 by 2029. Average rent prices are also likely to continue rising, potentially reaching $1,600 to $1,700 per month in the next five years, driven by ongoing population growth and demand for housing in the area.
In summary, zip code 78109 has demonstrated a strong trend towards increased homeownership, accompanied by significant growth in average home prices. The area has shown resilience in its rental market, maintaining rising rent prices despite a decreasing percentage of renters. Recent data suggests a slight cooling in the housing market, likely due to rising interest rates, but the overall trend remains positive for both homeowners and investors in this growing Texas community.
