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Average Home Values and Ownership Soar in Zip Code 67656: Rural Kansas Community Embraces Homeownership
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
Ogallah, located in zip code 67656 in Kansas, is a small rural community that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and their relationship to federal interest rates. The homeownership rate in Ogallah has shown a notable increase from 71% in 2013 to 92% in 2022. This upward trend coincides with a substantial rise in average home prices. In 2016, the average home price was $75,667, which steadily increased to $132,207 by 2022, representing a 74.7% increase over six years. This positive correlation between homeownership rates and average home prices suggests a growing demand for housing in the area, potentially driven by factors such as local economic growth or improved community amenities.
The relationship between federal interest rates and homeownership rates in Ogallah appears to follow the typical pattern observed nationally. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership rates in the area increased. For instance, when interest rates were at 0.08% in 2021, the homeownership rate reached 97%, the highest in the observed period. This aligns with the general trend that lower interest rates make mortgages more affordable, encouraging homeownership.
Regarding rental trends, the percentage of renters in Ogallah has decreased significantly from 29% in 2013 to 8% in 2022. This decline in the renter population corresponds with the increase in homeownership rates. The decreasing renter population, combined with the rising home prices, suggests that the rental market in Ogallah may be shrinking as more residents transition to homeownership.
In 2023 and 2024, the average home prices in Ogallah showed a slight fluctuation. The average home price in 2023 was $132,085, a marginal decrease from 2022. However, in 2024, the price increased to $136,651, representing a 3.5% rise from the previous year. Interestingly, these price changes occurred as federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates observed in previous years.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Ogallah could potentially reach around $160,000 by 2029. This projection assumes a steady annual growth rate similar to that observed between 2016 and 2022. However, it's important to note that various factors, including changes in local economic conditions, population dynamics, and broader market trends, could influence these projections.
In summary, Ogallah has experienced a significant increase in homeownership rates over the past decade, accompanied by a substantial rise in average home prices. The inverse relationship between federal interest rates and homeownership rates is evident, with lower rates corresponding to higher ownership percentages. The rental market has contracted as more residents have become homeowners. Despite recent increases in interest rates, home prices in the area continue to show an upward trend, suggesting ongoing demand for housing in this Kansas community.
