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Average Home Values and Ownership in Zip Code 78748: A Decade of Dramatic Changes
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 78748, located in Austin, Texas, has experienced significant changes in its real estate landscape over the past decade. This area has seen fluctuations in homeownership rates, coupled with substantial increases in both average home prices and average rent prices. The interplay between these factors has shaped the housing market in this vibrant part of Austin.
The homeownership rate in zip code 78748 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 59%, and it maintained this level for several years. However, there was a slight decline to 57% in 2022. This stability in homeownership occurred despite a significant increase in average home prices. In 2013, the average home price was $207,977, which rose dramatically to $525,870 by 2022, representing a 153% increase over this period. This substantial price appreciation did not lead to a proportional decrease in homeownership, suggesting strong demand and possibly increased income levels in the area.
Federal interest rates have played a role in homeownership trends in zip code 78748. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained stable at 59%, likely supported by the favorable borrowing conditions. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership to 57%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 78748 have shown a slight increase, moving from 41% in 2013 to 43% in 2022. This change coincides with a steady rise in average rent prices. In 2013, the average rent was $1,331, which increased to $1,611 by 2022, representing a 21% increase. The population of the zip code also grew during this period, from 41,384 in 2013 to 50,409 in 2022, potentially contributing to increased demand for rental properties and subsequent rent increases.
In 2023 and 2024, the average home prices in zip code 78748 experienced a decline from their 2022 peak. The average home price in 2023 was $475,578, dropping further to $457,982 in 2024. This represents a decrease of 12.9% from the 2022 high. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices in the area.
Looking ahead, based on the historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may stabilize or show modest growth after the recent decline, potentially reaching around $490,000 by 2029. Average rent prices could continue their upward trajectory, potentially reaching $1,900 by 2029, driven by population growth and demand for housing in the Austin area.
In summary, zip code 78748 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has seen substantial population growth, which has likely contributed to rising rent prices and sustained demand for both owned and rented properties. Recent cooling in the housing market, coupled with higher interest rates, suggests a potential shift towards more balanced growth in the coming years.
