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Average Home Values and Ownership in Zip Code 83427: A Decade of Growth in Iona, Idaho
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 83427, encompassing Iona in Idaho, presents an intriguing case study of homeownership and housing market dynamics in a small, growing community. This area has experienced a remarkable increase in homeownership rates, rising from 88% in 2013 to 96% in 2022. Concurrently, average home prices have seen significant growth, while average rent prices have fluctuated over the years.
The relationship between homeownership rates and average home prices in this zip code shows a strong positive correlation. As homeownership increased from 88% in 2013 to 95% in 2019, average home prices rose from $167,998 to $255,629, representing a 52% increase. This trend continued into 2022, with homeownership reaching 96% and average home prices climbing to $446,952, marking a substantial 166% increase from 2013.
Federal interest rates appear to have played a role in the increasing homeownership rates in this area. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the most significant increases in homeownership, suggesting that favorable borrowing conditions may have encouraged more residents to purchase homes. Even as interest rates began to rise in 2022 to 1.68%, homeownership rates in the zip code remained stable at 96%.
The renter population in zip code 83427 has steadily decreased as homeownership rates climbed. In 2013, 12% of the population were renters, but by 2022, this figure had dropped to just 4%. Despite this decline, average rent prices have shown volatility. From 2013 to 2018, average rent prices remained relatively stable, ranging from $829 to $874. However, there was a significant jump in 2019 to $1,204, followed by slight decreases in 2020 and 2022 to $1,151. This increase in rent prices, despite fewer renters, may be attributed to the overall growth in population from 936 in 2013 to 1,420 in 2022, potentially creating more competition for the limited rental properties available.
In 2023 and 2024, the housing market in zip code 83427 showed signs of stabilization after years of rapid growth. The average home price in 2023 was $416,252, representing a slight decrease from the 2022 peak. In 2024, prices have marginally increased to $421,718. This moderation in home prices coincides with significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially cooling the market.
Looking ahead, predictive models suggest a continued but more moderate growth in average home prices for zip code 83427 over the next five years. Based on historical trends and current market conditions, average home prices could potentially reach around $480,000 to $500,000 by 2029. Average rent prices are projected to stabilize and potentially see modest increases, potentially reaching $1,300 to $1,400 per month in the same period.
In summary, zip code 83427 has demonstrated a strong trend towards homeownership, with rates reaching an impressive 96% by 2022. This shift has been accompanied by substantial increases in average home prices, particularly from 2013 to 2022. The area has also seen a significant reduction in its renter population, although average rent prices have shown volatility. Recent data from 2023 and 2024 suggests a potential stabilization in the housing market, likely influenced by rising interest rates. Moving forward, the area is expected to continue seeing growth in both home prices and rent, albeit at a more moderate pace.
