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Home Values and Ownership in Zip Code 40031: La Grange'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
La Grange, located in zip code 40031 in Kentucky, has experienced notable changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in average rent prices. The homeownership rate in La Grange has shown a slight upward trend over the years. In 2013, the homeownership rate was 75%, which increased to 78% by 2022. This rise in homeownership coincided with a significant increase in average home prices. The average home price in 2013 was $199,890, and by 2022, it had risen to $343,500, representing a substantial 71.8% increase over nine years. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 76-77%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased slightly to 78%. This suggests that other factors, such as local economic conditions or housing demand, may have had a stronger influence on homeownership in La Grange than interest rates alone.
Renter percentages in La Grange have fluctuated over the years, generally showing an inverse relationship to homeownership rates. In 2013, the renter percentage was 24%, which decreased slightly to 22% by 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $865, which increased to $977 in 2018, representing a 13% rise. However, by 2022, the average rent had decreased to $929, a 4.9% drop from the 2018 peak. This fluctuation in rent prices could be attributed to changes in housing supply, local economic conditions, or shifts in population demographics.
In 2023 and 2024, La Grange continued to see changes in its housing market. The average home price in 2023 reached $353,183, a 2.8% increase from 2022. In 2024, it further increased to $357,958, showing a 1.4% rise from the previous year. Notably, federal interest rates also saw significant increases during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in La Grange. Average home prices are likely to continue their upward trajectory, potentially reaching around $400,000 by 2029. However, the rate of increase may slow down due to higher interest rates. Average rent prices might stabilize or show moderate increases, potentially reaching $1,100-$1,200 per month by 2029, assuming continued population growth and demand for rental properties.
In summary, La Grange has experienced a trend of increasing homeownership rates and rising average home prices over the past decade. While rent prices have fluctuated, they have generally remained more stable compared to home prices. The area's housing market has shown resilience, with continued growth in home values despite recent increases in interest rates. These trends suggest a robust local housing market with sustained demand for both owned and rented properties.
