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Average Home Values and Ownership in Zip Code 89801: Elko's Mining City Real Estate Trends
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 89801, located in Elko, Nevada, has experienced notable shifts in its housing market over the past decade. This area, known for its rich mining history and outdoor recreational opportunities, has seen fluctuations in homeownership rates and housing prices that reflect both local economic conditions and broader national trends.
The homeownership rate in zip code 89801 has shown a slight downward trend over the years. In 2013, 65% of housing units were owner-occupied. This rate increased to 67% in 2014 and remained relatively stable until 2019. However, by 2022, the homeownership rate had decreased to 64%. Coinciding with these changes, average home prices in the area have generally trended upward. In 2013, the average home price was $244,821, and by 2022, it had risen to $325,117, representing a substantial increase of 32.8% over this period.
The relationship between federal interest rates and homeownership rates in zip code 89801 appears to follow expected patterns. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively high at 65-67%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed a slight decline in homeownership rates to 64%.
Renter percentages in zip code 89801 have shown a corresponding increase as homeownership rates declined. In 2013, 34% of housing units were renter-occupied, and this percentage remained relatively stable until 2019. By 2022, the renter percentage had increased to 36%. Average rent prices have fluctuated over this period. In 2013, the average rent was $949, rising to a peak of $1,118 in 2021 before slightly decreasing to $1,081 in 2022. This represents a total increase of 13.9% in average rent from 2013 to 2022. The population growth from 18,659 in 2013 to 21,304 in 2022 may have contributed to the increased demand for rental properties and the overall rise in rent prices.
Looking at the most recent data, average home prices in zip code 89801 continued to rise in 2023 and 2024, reaching $334,466 and $344,704 respectively. This represents a further increase of 6% from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 89801 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $380,000 by 2029. For rent prices, the trend suggests a continued gradual increase, potentially reaching around $1,200 per month on average by 2029.
In summary, zip code 89801 has experienced a slight decrease in homeownership rates alongside significant increases in average home prices over the past decade. Renter percentages have marginally increased, with average rent prices showing overall growth despite some fluctuations. The recent sharp rise in interest rates, coupled with continuing increases in home prices, may present challenges for potential homebuyers in the coming years. These trends reflect the dynamic nature of the housing market in this Nevada community.
