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Average Home Values and Ownership in Zip Code 97838: A Decade of Growth in Hermiston, Oregon
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 97838, located in Hermiston, Oregon, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 97838 has shown a general upward trend, rising from 64% in 2013 to 69% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $155,385, which steadily climbed to $335,688 by 2022, representing a remarkable 116% increase over this period. The most significant annual jump occurred between 2020 and 2021, when average home prices surged from $248,849 to $291,210, a 17% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. The period from 2013 to 2022 was characterized by historically low interest rates, ranging from 0.11% in 2013 to 1.68% in 2022. These low rates likely contributed to the increased homeownership, as they made mortgages more affordable for many buyers. The spike in homeownership from 65% in 2018 to 68% in 2019 coincided with a slight increase in interest rates to 2.16%, suggesting that some buyers may have rushed to purchase homes before rates potentially rose further.
Conversely, the renter population in zip code 97838 has seen a gradual decline, dropping from 35% in 2013 to 31% in 2022. Despite this decrease, average rent prices have shown volatility. In 2013, the average rent was $873, which fluctuated over the years, reaching a low of $760 in 2018 before climbing to $970 in 2021. Interestingly, 2022 saw a decrease in average rent to $831, possibly influenced by the increasing homeownership rate and the growing population, which rose from 25,278 in 2013 to 28,597 in 2022.
Looking at the most recent data, the average home price in zip code 97838 slightly decreased from $335,688 in 2022 to $335,564 in 2023, before showing a modest increase to $338,033 in 2024. This stabilization in home prices occurs against a backdrop of significantly higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates may be tempering home price growth and could potentially impact future homeownership rates.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 97838 will continue to grow, albeit at a more moderate pace compared to the rapid increases seen in the early 2020s. We project average home prices to reach approximately $370,000 by 2029. For average rent prices, the forecast suggests a gradual increase, potentially reaching around $1,050 by 2029, assuming continued population growth and economic stability in the area.
In summary, zip code 97838 has experienced a significant increase in homeownership rates and average home prices over the past decade, driven by low interest rates and local economic factors. The rental market has seen a decline in the percentage of renters, with fluctuating average rent prices. Recent stabilization in home prices and higher interest rates may signal a shift towards more moderate growth in the housing market. The area's continued population growth and economic development will likely play crucial roles in shaping future housing trends in this zip code.
