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Georgetown's Zip Code 78633: Resilient Homeownership Amid Rising Home Values
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
Georgetown, Texas, zip code 78633, is a rapidly growing area that has seen significant changes in its housing market over the past decade. This suburban community, located north of Austin, has maintained a high rate of homeownership while experiencing substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 78633 has remained remarkably stable, hovering around 92% from 2013 to 2022. This high rate of owner-occupied housing suggests a strong preference for homeownership in the area. During this same period, average home prices have shown a dramatic upward trend. In 2010, the average home price was $246,123, and by 2022, it had more than doubled to $517,310, representing a 110% increase over 12 years. This significant appreciation in home values has not deterred homeownership, as the percentage of owner-occupied homes remained consistent.
The stability in homeownership rates despite rising home prices can be partially attributed to the low federal interest rates that prevailed for much of the 2010s. Interest rates remained below 1% from 2009 to 2016, making home financing more affordable and encouraging homeownership. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in 78633 remained steady, indicating the area's strong appeal to homeowners even in the face of potentially higher mortgage costs.
Renter percentages in zip code 78633 have remained low, consistently around 8% from 2013 to 2022. Despite the small renter population, average rent prices have shown an upward trend, albeit with some fluctuations. In 2013, the average rent was $1,681, rising to a peak of $1,747 in 2018 before settling at $1,671 in 2022. This represents a modest overall increase of about 5.6% in average rent prices over nine years. The relatively stable rent prices, compared to the more dramatic rise in home values, may reflect the limited rental market in this predominantly owner-occupied area.
In 2023 and 2024, the housing market in zip code 78633 experienced a shift. The average home price decreased from the 2022 peak of $517,310 to $488,362 in 2023 and further to $468,646 in 2024. This represents a 9.4% decline over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007. These higher interest rates likely contributed to the cooling of home prices by making borrowing more expensive for potential homebuyers.
Looking ahead, based on recent trends and economic factors, we can forecast potential scenarios for the next five years. Average home prices may stabilize or show modest growth as the market adjusts to higher interest rates. We might expect prices to reach around $500,000 by 2029 if a gradual recovery occurs. Average rent prices could continue to increase moderately, potentially reaching about $1,800 by 2029, assuming continued demand for the limited rental properties in the area.
In summary, zip code 78633 in Georgetown, Texas, has maintained a consistently high rate of homeownership despite significant increases in average home prices over the past decade. The area has weathered changes in federal interest rates and a recent cooling in the housing market while maintaining its appeal to homeowners. The rental market, though small, has seen modest growth in average rents. As the community continues to evolve, it will likely remain a predominantly owner-occupied area with potential for further, albeit more moderate, appreciation in both home values and rent prices.
