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Average Home Values and Ownership in Zip Code 79508: A Decade of Growth in Buffalo Gap, 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
Buffalo Gap, Texas, zip code 79508, is a small town that has experienced notable fluctuations in its housing market over the past decade. This analysis will explore the trends in homeownership rates, average home prices, and average rent prices in this area.
The homeownership rate in Buffalo Gap has remained relatively high, ranging from 88% to 96% between 2013 and 2022. During this period, average home prices have shown a steady increase. In 2013, the average home price was $125,212, which rose to $221,370 by 2022, representing a 76.8% increase over nine years. This upward trend in home prices coincided with generally stable homeownership rates, suggesting that residents of Buffalo Gap have maintained their ability to purchase homes despite rising prices.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership rates in Buffalo Gap remained high, between 93% and 96%. As interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership, dropping to 88% in 2019. However, the rate rebounded to 91% by 2022, even as interest rates reached 1.68%, indicating the resilience of homeownership in this market.
Renter percentages in Buffalo Gap have been relatively low, ranging from 3% to 11% between 2013 and 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $770, which increased to $1,040 in 2018, representing a 35% rise. However, rent prices then fluctuated, dropping to $832 in 2020 before surging to $1,239 in 2021, and then returning to $832 in 2022. These fluctuations in rent prices don't show a clear correlation with the small changes in renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may have a more significant impact on rent prices in this area.
In 2023 and 2024, the housing market in Buffalo Gap continued to evolve. The average home price reached $227,198 in 2023 and further increased to $232,570 in 2024, showing a continued upward trend. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices in Buffalo Gap continued to appreciate, suggesting strong demand or limited supply in the area.
Looking ahead, based on the historical data and recent trends, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Buffalo Gap could potentially reach around $270,000 to $290,000 by 2029. However, this projection assumes a steady growth rate and doesn't account for potential economic shifts or changes in local market conditions. Average rent prices are more challenging to predict due to their recent volatility, but if they stabilize, they could range between $900 and $1,300, depending on local economic factors and housing demand.
In summary, Buffalo Gap's housing market has demonstrated resilience and growth over the past decade. The town has maintained high homeownership rates despite rising home prices, suggesting a strong local economy or desirable living conditions. The rental market, while smaller, has shown more volatility in pricing. As we move forward, the interplay between interest rates, local economic conditions, and housing supply will likely continue to shape the housing market in this Texas town.
