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Home Values and Ownership in Zip Code 40511: A Decade of Change in Lexington-Fayette, Kentucky
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 40511, located in Lexington-Fayette, Kentucky, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 40511 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 64%, and by 2022, it stood at 62%. During this period, average home prices in the area saw substantial growth. In 2013, the average home price was $140,418, which increased steadily to reach $259,422 by 2022, representing an impressive 84.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, fluctuating between 60% and 64%. This stability in homeownership, despite rising home prices, can be attributed to the affordability of mortgages due to low interest rates.
Renter percentages in zip code 40511 have shown a slight increase over the years, from 36% in 2013 to 38% in 2022. This trend coincides with a significant increase in average rent prices. In 2013, the average rent was $971, which rose to $1,186 by 2022, marking a 22.1% increase. The population growth in the area, from 32,562 in 2013 to 35,794 in 2022, likely contributed to the increased demand for rental properties and subsequent rise in rent prices.
In 2023 and 2024, the housing market in zip code 40511 continued to evolve. The average home price reached $274,090 in 2023 and further increased to $285,358 in 2024, showing a continued upward trend. Interestingly, this growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in zip code 40511 could potentially reach around $330,000 by 2029. Similarly, average rent prices might increase to approximately $1,400 per month over the same period.
In summary, zip code 40511 has demonstrated a robust housing market characterized by steadily increasing home values and rent prices. The area has maintained a relatively stable homeownership rate despite rising prices, likely supported by low interest rates in earlier years. The recent continuation of price growth, even in the face of higher interest rates, indicates strong demand in this Lexington-Fayette location. As the population continues to grow and housing demand remains high, both homeowners and renters in this zip code can expect to see further increases in property values and rental costs in the coming years.
