Loading Content...
Denver's Zip Code 80220: Rising Home Values and Stable Ownership Rates Amid Market Changes
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 80220, located in Denver, Colorado, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a general trend of increasing average home prices and average rent costs, with fluctuations in the balance between owner-occupied and renter-occupied housing.
From 2013 to 2022, the percentage of owner-occupied housing in zip code 80220 remained relatively stable, with minor fluctuations. In 2013, the homeownership rate was 58%, and by 2022, it stood at 57%. During this period, average home prices in the area saw substantial growth. In 2013, the average home price was $337,830, which increased dramatically to $738,688 by 2022, representing a 118.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained steady at 57-58%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership to 59%. This suggests that despite rising interest rates, other factors such as strong local economic conditions may have supported homeownership.
Renter percentages in zip code 80220 have shown slight variations, ranging from 41% to 43% between 2013 and 2022. The average rent prices have steadily increased during this period. In 2013, the average rent was $1,344, which rose to $1,515 by 2022, an increase of 12.7%. This increase in rent prices occurred alongside population growth, with the area's population rising from 34,786 in 2013 to 35,510 in 2022.
Looking at the most recent data for 2023 and 2024, we see a slight decline in average home prices. The average home price in 2023 was $717,911, dropping further to $717,196 in 2024. This represents a 2.9% decrease from the 2022 peak. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may be contributing to the cooling of home prices.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or modest growth in average home prices, assuming interest rates remain elevated. Average rent prices are likely to continue their upward trajectory, albeit at a potentially slower pace, driven by ongoing demand for rental properties in this urban area.
In summary, zip code 80220 has demonstrated resilience in its housing market, with stable homeownership rates despite substantial increases in average home prices. The recent cooling of the housing market, coinciding with rising interest rates, suggests a potential shift in the area's real estate dynamics. The rental market has shown steady growth, reflecting the area's continued attractiveness to both homeowners and renters.
