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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 40207, located in St. Matthews, Kentucky, has maintained a stable housing market over the past decade, characterized by consistent homeownership rates and rising property values. This analysis examines the trends in homeownership, average home prices, and rent prices in this area from 2013 to 2024. The homeownership rate in zip code 40207 has remained remarkably steady at 70% from 2013 to 2022, despite significant changes in average home prices. In 2013, the average home price was $242,759, which increased to $375,580 by 2022, representing a 54.7% rise over nine years. This consistent increase in home values did not deter homeownership, suggesting a strong desire for property ownership and potentially indicating a robust local economy.
Federal interest rates have played a role in the housing market trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with the period when homeownership rates stabilized at 70%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in zip code 40207 remained unchanged. This stability despite rising interest rates suggests that local economic conditions or housing market dynamics may have a more significant influence on homeownership in this area.
The renter population in zip code 40207 has also shown stability, consistently representing about 30% of the population from 2013 to 2022. During this period, average rent prices experienced notable fluctuations. In 2013, the average rent was $1,083, which increased to $1,524 by 2018, a 40.7% increase. However, rent prices then decreased to $1,196 in 2022, a 21.5% drop from the 2018 peak. These fluctuations in rent prices did not significantly impact the proportion of renters, indicating that other factors, such as job opportunities or lifestyle preferences, may be influencing renting decisions in this area.
Recent data shows that the average home price in zip code 40207 continued to rise, reaching $388,576 in 2023 and $397,649 in 2024, a 5.9% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices have continued to appreciate, suggesting strong demand in this real estate market.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 40207 will continue to rise, potentially reaching around $450,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,400 by 2029, considering the historical fluctuations and recent stabilization in rent prices.
In summary, zip code 40207 demonstrates a robust and stable housing market characterized by consistent homeownership rates despite rising home prices. The area has shown resilience to changes in federal interest rates, maintaining steady homeownership and renter proportions. The continued appreciation of home values, even in the face of rising interest rates, suggests a strong local real estate market with sustained demand. These trends indicate that zip code 40207 remains an attractive area for both homeowners and renters, with potential for further growth in property values in the coming years.