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Home Values and Ownership in Zip Code 53583: A Decade of Growth in Sauk City, Wisconsin
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 53583, located in Sauk City, Wisconsin, has experienced notable shifts 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, while average rent prices have fluctuated.
The homeownership rate in zip code 53583 has shown a significant upward trend, particularly in recent years. In 2013, 74% of housing units were owner-occupied. This rate remained relatively stable until 2020, hovering around 74-77%. However, there was a marked increase in 2021 and 2022, with homeownership reaching 84% and 83% respectively. This rise in homeownership coincides with a substantial increase in average home prices. From 2013 to 2022, average home prices in the area rose from $184,405 to $335,114, representing an impressive 81.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 2.16%), homeownership rates remained relatively stable until 2021. The significant jump in homeownership in 2021 (from 75% to 84%) occurred when interest rates were at their lowest (0.08%). This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 53583 have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. The percentage of renters dropped from 26% in 2013 to 17% in 2022. Interestingly, average rent prices in the area have not shown a consistent trend. They peaked in 2014 at $974 but have since fluctuated, reaching $798 in 2022. This lack of correlation between renter percentages and rent prices suggests that other factors, such as local economic conditions or housing supply, may have a more significant impact on rent prices in this area.
In 2023 and 2024, average home prices in zip code 53583 continued their upward trajectory, reaching $356,954 in 2023 and $364,913 in 2024. This represents a 6.5% increase from 2022 to 2023 and a further 2.2% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007. Despite these higher interest rates, home prices have continued to appreciate, indicating strong demand in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 53583 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $400,000 by 2029. Rent prices, which have been more volatile, are harder to predict but may stabilize or increase slightly, potentially reaching an average of $850-$900 per month by 2029.
In summary, zip code 53583 has experienced a significant increase in homeownership rates and average home prices over the past decade, with this trend continuing into 2023 and 2024 despite rising interest rates. The area has shown resilience in its housing market, with home values appreciating consistently. The rental market has been more variable, with fluctuating prices and a decreasing proportion of renters. These trends suggest a strong local housing market with growing preference for homeownership among residents.
