Loading Content...
Home Values and Ownership in Zip Code 72211: A Decade of Change in Little Rock
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 72211, a suburban area in Little Rock, Arkansas, spanning 8.55 square miles, has undergone significant changes in homeownership rates and housing prices over the past decade. The area has experienced a declining trend in ownership percentage, while average home prices have generally increased. Average rent prices have also risen, reflecting the dynamic real estate market in this region.
The homeownership rate in zip code 72211 has steadily decreased from 60% in 2014 to 48% in 2022. During this same period, average home prices have shown an overall upward trend. In 2014, the average home price was $191,234, which increased to $257,161 by 2022, representing a 34.5% increase over eight years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 72211. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 55-60%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, dropping from 56% in 2017 to 48% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in zip code 72211 increased from 39% in 2014 to 52% in 2022. This shift coincided with a rise in average rent prices. In 2013, the average rent was $992, which increased to $1,061 by 2022, representing a 7% increase over nine years. The population in the zip code also grew during this period, from 20,484 in 2014 to 21,594 in 2022, potentially contributing to increased demand for rental properties and subsequent rent increases.
In 2023 and 2024, the real estate market in zip code 72211 continued to evolve. The average home price rose to $264,127 in 2023 and further increased to $270,768 in 2024, showing a steady upward trajectory. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may continue to impact homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 72211 are likely to continue their upward trend over the next five years, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 72211 has experienced a notable shift from homeownership to renting over the past decade, accompanied by rising home prices and rents. The interplay between federal interest rates, housing affordability, and population growth has significantly influenced these trends. As the area continues to develop, it's likely to see further increases in both home values and rental costs, potentially reshaping the demographic composition of this Little Rock suburb.
