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Average Home Values and Ownership in Zip Code 86401: Trends in Kingman's Vast Expanse
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 86401, located in Kingman, Arizona, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its desert landscape and proximity to the Grand Canyon, has seen a general trend of increasing average home prices and fluctuating ownership percentages.
The homeownership rate in zip code 86401 has shown resilience, remaining relatively stable with some fluctuations. In 2013, the homeownership rate was 70%, and by 2022, it stood at 69%. During this period, average home prices saw a significant upward trend. In 2013, the average home price was $116,806, which steadily increased to $287,371 by 2022, representing a remarkable 146% increase over nine years. This substantial rise in home prices did not significantly impact the homeownership rate, suggesting strong local demand and potentially favorable economic conditions for homebuyers in the area.
Federal interest rates have played a role in homeownership trends in zip code 86401. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates fluctuated between 67% and 70%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly, reaching 72% in 2019. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates in this particular zip code.
Renter percentages in zip code 86401 have shown an inverse relationship to homeownership rates, naturally. The renter population peaked at 32% in 2015 when the average rent was $942. Interestingly, as average rent prices increased to $1,010 by 2021, the renter percentage decreased to 30%. This could indicate that rising rent prices may have encouraged some residents to transition to homeownership. The population growth from 25,775 in 2015 to 30,887 in 2022 might have also influenced the rental market dynamics.
In 2023 and 2024, the average home prices in zip code 86401 showed a slight decline followed by a marginal increase. The average home price in 2023 was $278,743, dropping about 3% from 2022. However, in 2024, it slightly recovered to $279,506. This period coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the stabilization of home prices after years of rapid growth.
Looking ahead, based on historical trends and current economic indicators, we can forecast potential 5-year trends for average home and rent prices in zip code 86401. Average home prices may continue to experience moderate growth, potentially reaching around $320,000 by 2029, assuming a conservative annual growth rate of 2-3%. Average rent prices, which have shown more stability, might increase to approximately $1,100 per month over the same period, reflecting a modest annual increase of 2-2.5%.
In summary, zip code 86401 has demonstrated a robust housing market with steadily increasing average home prices and relatively stable homeownership rates over the past decade. The area has shown resilience in the face of rising interest rates and growing population. The slight cooling of the market in 2023-2024 suggests a potential stabilization phase, which could lead to more sustainable growth in the coming years. The interplay between homeownership rates, rental percentages, and housing prices indicates a dynamic and adaptable local real estate market.
