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Home Values and Ownership in Zip Code 68621: A Decade of Change in Rural Nebraska
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 68621, located in Ames, Nebraska, has experienced notable shifts in homeownership rates and housing prices over the past decade. This small community, with a population of 288 in 2022, has seen a gradual decrease in homeownership alongside rising average home and rent prices.
The ownership percentage in zip code 68621 has shown a consistent downward trend from 2013 to 2022. In 2013, the homeownership rate was 87%, but by 2022 it had decreased to 73%. This decline coincides with a significant increase in average home prices. In 2013, the average home price was $136,308, which steadily rose to $281,617 by 2022, representing a 106.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained stable at around 83-87%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined to 73%. This trend aligns with the general expectation that higher interest rates can make homeownership less affordable.
Conversely, the percentage of renters in zip code 68621 has increased from 13% in 2013 to 26% in 2022. This rise in renters corresponds with an increase in average rent prices. The average rent price rose from $674 in 2013 to $787 in 2022, an increase of 16.8%. It's worth noting that the population fluctuated during this period, peaking at 321 in 2019 before declining to 288 in 2022, which may have influenced rental demand and prices.
In 2023 and 2024, the average home prices in zip code 68621 continued to rise, reaching $293,709 in 2023 and $299,533 in 2024. This represents a 4.3% increase from 2022 to 2023 and a further 2% increase from 2023 to 2024. Interestingly, these price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 68621 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also likely to increase, driven by the growing renter population and overall housing market trends. However, the rate of increase may moderate if the population stabilizes or declines further.
In summary, zip code 68621 has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and rent. Despite recent high interest rates, home prices have continued to rise, suggesting strong underlying demand in this area. These trends indicate a changing housing landscape in Ames, Nebraska, with implications for both current and future residents.
