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Average Home Values and Ownership in Zip Code 83634: A Decade of Change in Kuna, 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 83634, located in Kuna, Idaho, has experienced significant growth and changes in its housing market over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 83634 has shown resilience and growth, increasing from 75% in 2017 to 84% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2017, the average home price was $219,478, which more than doubled to $494,072 by 2022. This remarkable 125% increase in average home prices over five years indicates a strong demand for housing in the area, possibly driven by factors such as population growth and economic development.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 83634. The period from 2013 to 2016 saw relatively stable homeownership rates around 80-81%, coinciding with historically low interest rates ranging from 0.09% to 0.4%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 75-76%. However, the dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a rebound in homeownership rates to 81% and 82% respectively. This pattern suggests that lower interest rates have indeed encouraged homeownership in the area by making mortgages more affordable.
Renter percentages in zip code 83634 have fluctuated inversely to homeownership rates, ranging from 15% to 20% between 2013 and 2022. Despite these fluctuations, average rent prices have shown a general upward trend. In 2013, the average rent was $1,142, which increased to $1,230 by 2022, representing a 7.7% increase over nine years. This moderate growth in rent prices, compared to the more dramatic rise in home prices, may have contributed to the area's increasing homeownership rates. The population growth from 22,759 in 2013 to 30,329 in 2022 likely contributed to the overall demand for both rental and owned properties.
Looking at the most recent data, 2023 saw a significant correction in the housing market of zip code 83634, with average home prices dropping to $442,112 from the 2022 peak of $494,072. This 10.5% decrease coincided with a sharp rise in federal interest rates to 5.02%. In 2024, there's a slight recovery in average home prices to $448,921, despite interest rates further increasing to 5.33%. This indicates a degree of resilience in the local housing market, even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate a moderate growth in both average home and rent prices. Average home prices are expected to stabilize and potentially show modest gains, possibly reaching around $475,000 by 2029. Average rent prices are projected to continue their gradual upward trajectory, potentially reaching $1,400 by 2029. These predictions assume a continuation of current economic conditions and local market factors.
In summary, zip code 83634 has demonstrated a robust housing market characterized by increasing homeownership rates and substantial growth in average home prices. The inverse relationship between federal interest rates and homeownership rates highlights the significant impact of monetary policy on local housing markets. The area's strong population growth has supported demand for both owned and rental properties, contributing to price increases across both sectors. The recent market correction and subsequent stabilization suggest a maturing market that may be poised for more sustainable growth in the coming years.
