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Growing Home Values and Ownership in Zip Code 68016: Cedar Creek'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 68016, located in Cedar Creek, Nebraska, presents an intriguing case study of homeownership and housing market dynamics in a small rural community. This area has experienced notable fluctuations in ownership percentages and average home prices over the past decade, with a general trend towards increased homeownership and rising property values.
The ownership percentage in zip code 68016 has shown a significant upward trend, increasing from 82% in 2013 to 91% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $169,284 in 2012 to $329,055 in 2022, representing a 94% increase over this period. The correlation between rising homeownership rates and increasing home values suggests a strong local housing market with growing demand for owner-occupied properties.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 68016. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the increase in homeownership from 82% to 93% during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained relatively stable, fluctuating between 88% and 93%, indicating a resilient local housing market.
The renter percentage in zip code 68016 has generally decreased over time, falling from 15% in 2013 to 7% in 2022. Interestingly, average rent prices have shown considerable volatility. They peaked at $1,051 in 2016 before dropping to $783 in 2017, and then rose again to $1,286 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a shift in local housing preferences towards homeownership, possibly driven by the area's small population and limited rental inventory.
Looking at the most recent data, average home prices in zip code 68016 continued to rise, reaching $335,681 in 2023 and $342,610 in 2024. This represents a 4.1% increase from 2022 to 2024, indicating a steady appreciation in property values. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 68016 will continue to appreciate, albeit at a potentially slower rate due to higher interest rates. Based on the historical growth rate, we project average home prices could reach approximately $400,000 by 2029. Average rent prices are expected to maintain their upward trajectory, potentially reaching around $1,500 per month in the same timeframe, assuming continued low rental inventory and steady demand.
In summary, zip code 68016 demonstrates a robust trend towards homeownership, with significantly increasing average home prices over the past decade. The area has shown resilience to rising interest rates, maintaining high homeownership levels despite recent rate hikes. The rental market, while smaller, has seen volatile pricing, reflecting the limited inventory and changing local preferences. As the community continues to grow, albeit slowly, these trends are likely to persist, shaping the local housing landscape in the coming years.
