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Average Home Values Soar in Zip Code 55946: Kenyon, Minnesota's Resilient 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
Zip code 55946, located in Kenyon, Minnesota, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 139.11 square miles, has seen a general trend of increasing homeownership and rising average home prices, while rental trends have fluctuated.
The homeownership rate in zip code 55946 has shown a steady increase from 80% in 2013 to 86% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $135,407, which more than doubled to $275,094 by 2022, representing a 103% increase over nine years. This correlation suggests that despite rising home prices, more residents in the area have been able to transition into homeownership.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained below 0.5%, which likely contributed to the relatively stable homeownership rates during this period, ranging from 78% to 81%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in zip code 55946 continued to climb, reaching its peak of 86% in 2022. This trend suggests that other local factors, such as employment opportunities or housing availability, may have had a stronger influence on homeownership than interest rates alone.
Renter percentages in the area have correspondingly decreased from 20% in 2013 to 13% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent price increased from $846 in 2013 to a peak of $1,061 in 2021, before dropping to $862 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, may indicate changing local economic conditions or shifts in the types of rental properties available.
Looking at the most recent data, the average home price in zip code 55946 continued to rise, reaching $283,261 in 2023 and $290,539 in 2024. This represents a 5.6% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests sustained demand for homeownership in the area.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in zip code 55946 will continue to rise, albeit potentially at a more moderate pace. Based on the historical data, we might expect average home prices to reach approximately $325,000 to $350,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict accurately. However, if the trend of increasing homeownership continues, we might see a stabilization or slight decrease in average rent prices, potentially settling around $900 to $950 per month by 2029.
In summary, zip code 55946 has demonstrated a strong trend towards increased homeownership and rising home values over the past decade. Despite fluctuations in federal interest rates and rent prices, the area has maintained a growing preference for homeownership. The continued rise in home prices, even in the face of higher interest rates, suggests a robust local housing market with sustained demand. These trends indicate a potentially favorable environment for long-term homeowners and investors in the area.
