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Average Home Values and Ownership Trends in Zip Code 67147: Valley Center's Shifting Housing Market
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
Valley Center, located in zip code 67147 in Kansas, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns and potential future trajectories.
The homeownership rate in Valley Center has shown a notable decline from 2013 to 2022. In 2013, the homeownership rate stood at 83%, but by 2022, it had decreased to 71%, marking a 12 percentage point drop over nine years. During this same period, average home prices in the area experienced substantial growth. In 2013, the average home price was $143,509, and by 2022, it had risen to $245,983, representing a remarkable 71.4% increase.
The relationship between federal interest rates and homeownership rates in Valley Center follows a generally expected pattern. In 2013, when interest rates were at a low 0.11%, homeownership was high at 83%. As interest rates began to rise, reaching 1.68% in 2022, homeownership decreased to 71%. This trend aligns with the principle that lower interest rates typically encourage homeownership due to more affordable financing options.
As homeownership rates declined, the percentage of renters in Valley Center increased from 16% in 2013 to 29% in 2022. This shift coincided with a significant rise in average rent prices. In 2013, the average rent was $808, but by 2022, it had climbed to $1,011, marking a 25.1% increase. The growing renter population, which expanded from 1,644 to 3,460 individuals during this period, likely contributed to the upward pressure on rent prices.
Looking at the most recent data, the average home price in Valley Center continued its upward trajectory, reaching $258,033 in 2023 and further increasing to $263,791 in 2024. This represents a 7.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Valley Center will continue to rise, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Valley Center has experienced a notable shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with rising home prices and increasing rent costs, suggests a changing dynamic in the local real estate market. The recent spike in interest rates may further impact these trends, potentially influencing future homeownership rates and housing affordability in the area.
