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Average Home Values and Ownership in Zip Code 78657: Resilience in Horseshoe Bay's Lakeside Resort Community
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 78657, located in Horseshoe Bay, Texas, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its picturesque lakeside setting, has seen a general trend of increasing homeownership and rising property values.
The homeownership rate in zip code 78657 has shown remarkable stability with a slight upward trend. In 2013, the homeownership rate was 86%, and by 2022, it had maintained this level at 85%. During this period, average home prices experienced substantial growth. In 2013, the average home price was $309,941, which steadily increased to $702,360 by 2022, representing a 126.6% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the highest homeownership rates in the zip code, peaking at 88% in 2020 when the interest rate was 0.38%. The low interest rates likely contributed to increased affordability and encouraged home buying.
Renter percentages in zip code 78657 have fluctuated inversely to homeownership rates, ranging from 12% to 19% between 2013 and 2022. Average rent prices have shown a general upward trend, increasing from $1,051 in 2013 to $1,119 in 2022, a 6.5% increase. Notably, the highest average rent of $1,155 was recorded in 2021 when the renter percentage was 13%. The population growth from 5,582 in 2013 to 6,069 in 2022 may have contributed to the overall increase in rent prices due to higher demand.
In 2023 and 2024, we observe a slight decrease in average home prices. The average home price in 2023 was $689,757, dropping to $680,116 in 2024. This represents a 1.3% decrease from 2022 to 2023 and a further 1.4% decrease from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the cooling of home prices.
Looking ahead, based on the historical trends and current market conditions, we can expect the following 5-year predictions for zip code 78657: Average home prices may stabilize or experience modest growth, potentially reaching around $750,000 by 2029. Average rent prices are likely to continue their upward trajectory, potentially reaching $1,300 per month by 2029. Homeownership rates may slightly decrease due to higher interest rates, potentially settling around 82-83% by 2029.
In summary, zip code 78657 has demonstrated strong homeownership rates and significant appreciation in average home values over the past decade. While recent increases in interest rates have led to a slight cooling in the housing market, the area's desirability and consistent population growth suggest a continued robust real estate market in the coming years.
