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Home Values and Ownership in Montgomery, Texas Zip Code 77356: A Decade of Growth and Resilience
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 77356, located in Montgomery, Texas, has experienced significant growth and changes in its housing market over the past decade. This area has seen a general trend of increasing homeownership rates and rising average home prices, coupled with fluctuations in average rent prices.
The homeownership rate in zip code 77356 has shown resilience and growth over the years. In 2013, the homeownership rate stood at 88%, and while it experienced some fluctuations, it remained relatively stable, ending at 85% in 2022. This high rate of homeownership coincided with a substantial increase in average home prices. From 2010 to 2022, average home prices in the area rose from $195,063 to $371,027, representing a remarkable 90% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices surging from $267,821 to $371,027, a 38.5% increase in just two years.
The relationship between federal interest rates and homeownership rates in this zip code is notable. Despite historically low interest rates from 2010 to 2021, ranging from 0.08% to 2.16%, the homeownership rate remained relatively stable, hovering around 85%. This suggests that other factors, such as local economic conditions and housing supply, may have played a more significant role in determining homeownership rates in this area than interest rates alone.
Renter percentages in zip code 77356 have fluctuated inversely to homeownership rates, as expected. The renter population reached its peak in 2020 at 20% before decreasing to 15% in 2022. Average rent prices have shown some volatility, ranging from $1,289 to $1,404 between 2013 and 2022. Notably, the highest average rent of $1,404 was recorded in 2018, coinciding with a period of lower homeownership (82%). The population growth from 22,564 in 2010 to 29,224 in 2022 may have contributed to the overall demand for rental properties, despite the high homeownership rates.
Looking at the most recent data, average home prices in zip code 77356 continued to rise, reaching $373,188 in 2023 and $375,984 in 2024. This represents a modest increase of 1.3% from 2022 to 2024, suggesting a potential slowdown in the rapid price growth observed in previous years. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 77356 will continue to rise, albeit at a more moderate pace. The current trajectory suggests that average home prices could reach approximately $400,000 by 2029. Average rent prices are expected to follow a similar trend, potentially increasing to around $1,450 per month over the next five years, assuming continued population growth and demand for housing in the area.
In summary, zip code 77356 has demonstrated strong homeownership rates and significant growth in average home prices over the past decade. The area has maintained a high proportion of owner-occupied homes despite fluctuations in the housing market and interest rates. The recent slowdown in price growth, coupled with rising interest rates, may signal a shift towards a more balanced market in the coming years. However, the continued population growth and desirability of the area suggest that both home prices and rent prices are likely to continue their upward trajectory, albeit at a more moderate pace.
