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Average Home Values and Ownership in Zip Code 85323: A Decade of Change in Avondale, Arizona
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 85323, located in Avondale, Arizona, has experienced significant demographic and economic shifts 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 conditions.
The ownership percentage in this zip code has shown variability over the years. In 2013, the homeownership rate stood at 53%, but it decreased to 47% by 2016. However, there was a rebound in recent years, with the rate reaching 59% in 2022. This trend aligns closely with changes in average home prices. In 2013, the average home price was $133,441, which steadily increased to $415,020 by 2022, representing a substantial 211% increase over this period. The correlation between rising home prices and homeownership rates suggests that despite increasing prices, more residents were able to enter the housing market, possibly due to economic growth in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 85323. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased from 51% in 2019 to 60% in 2021. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options. The low interest rates likely contributed to the significant jump in average home prices from $257,815 in 2020 to $330,247 in 2021, a 28% increase in just one year.
Renter percentages in zip code 85323 have fluctuated inversely to homeownership rates. In 2015 and 2016, the renter percentage peaked at 52%, coinciding with relatively lower average rent prices of $1,119 and $1,138 respectively. As the population grew from 37,511 in 2015 to 44,948 in 2022, average rent prices increased to $1,241 by 2022. This 11% increase in average rent over seven years, coupled with a decrease in the renter percentage to 41% in 2022, suggests a shift towards homeownership as the local economy improved and more residents could afford to buy homes.
In 2023 and 2024, we see a slight correction in the housing market of zip code 85323. The average home price decreased from $415,020 in 2022 to $388,291 in 2023, a 6.4% drop. However, there's a small uptick to $398,924 in 2024, indicating a potential stabilization. Interestingly, this occurs as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which typically would discourage home buying. This resilience in home prices despite higher interest rates suggests strong underlying demand in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 85323. Average home prices are likely to continue their upward trajectory, albeit at a more moderate pace. We might expect prices to reach around $450,000 to $475,000 by 2029, assuming economic conditions remain stable. For average rent prices, the trend suggests a continued increase, potentially reaching $1,400 to $1,500 per month by 2029, driven by population growth and housing demand.
In summary, zip code 85323 has demonstrated resilience and growth in its housing market. The area has seen a general trend towards increased homeownership, rising average home prices, and moderate increases in average rent prices. The interplay between federal interest rates, local economic conditions, and population growth has shaped these trends, creating a dynamic and evolving housing landscape in this Avondale zip code.
