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Home Values and Ownership in Zip Code 46044: A Decade of Growth in Frankton, Indiana
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 46044, located in Frankton, Indiana, presents an intriguing case study of housing market dynamics in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market conditions.
The relationship between homeownership rates and average home prices in zip code 46044 reveals interesting patterns. In 2013, the area had a high homeownership rate of 84%, with an average home price of $77,175. As average home prices steadily increased, reaching $115,609 by 2019, the homeownership rate decreased to 78%. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents. However, by 2022, despite a substantial increase in average home prices to $174,182, the homeownership rate rebounded to 83%, indicating a complex interplay of factors beyond just price influencing ownership trends.
Federal interest rates have played a significant role in shaping homeownership patterns in zip code 46044. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, coinciding with a slight decline in homeownership from 84% to 79%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable around 80%. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a moderate increase in homeownership to 82% by 2021, suggesting that lower rates may have incentivized home buying in this period.
Renter percentages and average rent prices in zip code 46044 have shown a general upward trend. In 2013, the renter-occupied percentage was 16%, with an average rent of $676. By 2019, this had increased to 22% of households renting, with average rent rising to $716. This trend suggests growing demand for rental properties, possibly driven by factors such as increased housing costs or changing demographic preferences. However, by 2022, there was a slight reversal, with the renter percentage decreasing to 17% and average rent at $722, indicating a potential shift back towards homeownership.
In 2023 and 2024, the housing market in zip code 46044 continued its upward trajectory. The average home price reached $180,657 in 2023 and further increased to $187,761 in 2024. This represents a significant 7.7% increase from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in zip code 46044 may continue to rise over the next five years, potentially reaching around $220,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $800 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, zip code 46044 has experienced notable shifts in its housing market over the past decade. The area has seen substantial growth in average home prices, fluctuations in homeownership rates, and a general upward trend in rental costs. The interplay between federal interest rates, local economic conditions, and housing affordability continues to shape the market dynamics in this Indiana community. As the area moves forward, balancing homeownership accessibility with rising property values will likely remain a key challenge for local policymakers and residents alike.
