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Average Home Values and Ownership in Zip Code 79407: A Decade of Change in Lubbock, Texas
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 79407, located in Lubbock, Texas, has experienced significant changes in its housing market over the past decade. This area has seen a general trend of decreasing homeownership rates, rising average home prices, and fluctuating average rent prices. The interplay between these factors offers insights into the evolving dynamics of this local real estate market.
The homeownership rate in zip code 79407 has shown a gradual decline from 2013 to 2022. In 2013, the percentage of owner-occupied housing units stood at 47%, which decreased to 44% by 2022. This decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $135,069, which rose dramatically to $213,935 by 2022, representing a 58.4% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for many residents in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, homeownership rates in zip code 79407 remained relatively stable, ranging from 47% to 49%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed a corresponding decline in homeownership rates, dropping to 44% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 79407 has shown an upward trend, increasing from 53% in 2013 to 56% in 2022. This rise in the renter population corresponds with fluctuations in average rent prices. The average rent increased from $942 in 2013 to $996 in 2022, with some variability in between. Notably, there was a significant jump in average rent to $1,120 in 2021, before dropping back to $996 in 2022. The overall population growth in the zip code, from 15,784 in 2013 to 21,935 in 2022, likely contributed to the increased demand for rental properties and the general upward pressure on rent prices.
In 2023 and 2024, the housing market in zip code 79407 continued to evolve. The average home price reached $218,480 in 2023, showing a further increase from 2022. However, in 2024, there was a slight decrease to $217,220. This minor correction comes amidst significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a stabilization or slight cooling of home prices in the area.
Looking ahead, predictive models suggest that average home prices in zip code 79407 may continue to rise moderately over the next five years, albeit at a slower pace than seen in recent years due to the higher interest rate environment. Average rent prices are also expected to increase, driven by population growth and the trend towards renting. However, the rate of increase may be tempered by affordability constraints and potential new housing developments.
In summary, zip code 79407 has experienced a shift towards a renter-majority population, driven by rising home prices and changing interest rates. The area has seen substantial appreciation in property values, making homeownership more challenging for some residents. As the population continues to grow, balancing housing affordability with market dynamics will likely be a key challenge for this Lubbock zip code in the coming years.
