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Average Home Values and Ownership Soar in Zip Code 83622: Garden Valley's Remarkable Real Estate Transformation
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 83622, located in Garden Valley, Idaho, presents an intriguing case study of housing trends in a rural area. This zip code has experienced significant shifts in homeownership rates and property values over the past decade, with a notable increase in owner-occupied housing and fluctuating average home and rent prices.
The ownership percentage in zip code 83622 has shown a strong upward trend, rising from 68% in 2013 to an impressive 90% in 2022. This substantial increase in homeownership coincides with a dramatic rise in average home prices. In 2013, the average home price was $164,331, and by 2022, it had more than tripled to $525,222. This correlation suggests that as property values increased, more residents were motivated or able to purchase homes, possibly viewing real estate as a valuable investment opportunity in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 83622. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which likely contributed to the initial increase in homeownership from 68% to 77%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership continued to climb, possibly due to residents' desire to secure mortgages before rates increased further.
The renter population in zip code 83622 has experienced a corresponding decline as homeownership increased. The percentage of renters decreased from 32% in 2013 to just 10% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $599, peaking at $855 in 2018 before dropping to $614 in 2022. This fluctuation in rent prices, coupled with the growing population from 1,056 in 2013 to 1,490 in 2022, suggests a complex rental market potentially influenced by factors such as housing availability and local economic conditions.
In 2023 and 2024, zip code 83622 experienced a slight correction in the housing market. The average home price decreased from $525,222 in 2022 to $498,002 in 2023, before rebounding to $514,603 in 2024. This coincided 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 temporary dip in home prices by potentially reducing buyer demand.
Looking ahead, predictive models suggest that average home prices in zip code 83622 may continue to rise moderately over the next five years, albeit at a slower pace than the rapid growth seen in the early 2020s. Average rent prices are expected to stabilize and potentially increase slightly, reflecting the area's growing population and limited rental inventory. However, the high homeownership rate may keep rental demand relatively low.
In summary, zip code 83622 has demonstrated a remarkable increase in homeownership, rising from 68% to 90% between 2013 and 2022, accompanied by a substantial appreciation in average home values. The interplay between federal interest rates, population growth, and local economic factors has shaped a housing market characterized by strong preference for homeownership and volatile rent prices. The recent stabilization of home prices and high interest rates suggests a potential shift towards a more balanced market in the coming years.
