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Average Home Values and Ownership in Zip Code 89301: Mining Town's Resilient Real Estate Market
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 89301, located in Ely, Nevada, is a vast area covering 6,807.33 square miles. This expansive region has experienced fluctuating homeownership rates and housing prices over the past decade, with notable trends in both the ownership and rental markets. The homeownership rate in zip code 89301 has remained relatively stable, ranging from 69% to 75% between 2013 and 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $118,155, which steadily increased to $211,996 by 2022, representing a significant 79.4% growth over nine years. This substantial rise in home values did not significantly impact homeownership rates, suggesting that other factors may have influenced residents' ability to maintain homeownership.
Federal interest rates have played a role in homeownership trends in zip code 89301. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained relatively high at 71% to 72%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 89301 have fluctuated between 24% and 29% from 2013 to 2022. Interestingly, average rent prices have not shown a consistent correlation with these fluctuations. In 2013, the average rent was $743, which decreased to $677 by 2016 despite a slight increase in the renter percentage. The average rent then rose to $886 in 2021, the highest point in the dataset, before dropping to $729 in 2022. These variations in rent prices occurred while the population decreased from 7,946 in 2013 to 7,579 in 2022, suggesting that factors beyond population changes influenced rental market dynamics.
In 2023 and 2024, average home prices in zip code 89301 continued to rise, reaching $213,739 and $214,913 respectively. This represents a modest increase of 1.4% from 2022 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, marking the highest rates since 2007. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can forecast potential 5-year trends for average home and rent prices in zip code 89301. Average home prices are likely to continue their upward trajectory, albeit at a slower pace due to higher interest rates. We might expect average home prices to reach around $230,000 to $240,000 by 2029. For average rent prices, given their historical volatility, a more conservative estimate would suggest they might fluctuate between $750 and $950, depending on local economic conditions and housing supply.
In summary, zip code 89301 has demonstrated resilient homeownership rates despite significant increases in average home prices over the past decade. The rental market has shown more volatility, with rent prices not always aligning with changes in the renter population. The recent sharp rise in interest rates, coupled with steadily increasing home prices, may present new challenges for both homeowners and renters in this Nevada community in the coming years.
