The renter population in zip code 62638 has seen a corresponding increase, from 12% in 2020 to 17% in 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2020, the average rent was $1,201, which increased to $1,264 in 2021 before returning to $1,201 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex rental market influenced by factors such as housing availability and local economic conditions.

Looking at the most recent data, average home prices in zip code 62638 continued to rise, reaching $120,404 in 2023 and $127,723 in 2024. This represents a substantial increase of 13.6% from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may put pressure on homeownership rates in the coming years if they persist.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62638 will continue to rise, potentially reaching around $150,000 by 2029. This projection is based on the consistent upward trend observed in recent years. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of $1,400 to $1,500 per month by 2029, assuming the market stabilizes and follows a more consistent growth pattern.

In summary, zip code 62638 has experienced a gradual shift towards a higher proportion of renters, coinciding with rising home prices and fluctuating rent costs. The inverse relationship between homeownership rates and average home prices, coupled with the significant impact of federal interest rates, highlights the complex dynamics of the local housing market. As home prices continue to rise and interest rates remain elevated, it will be crucial to monitor how these factors influence homeownership accessibility and rental market trends in the coming years.