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Home Values and Ownership in Zip Code 78751: A Decade of Change in Austin's Urban Landscape
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 78751, located in Austin, Texas, is a vibrant urban area known for its mix of historic charm and modern amenities. This neighborhood has experienced significant changes in homeownership rates and housing costs over the past decade. From 2013 to 2022, the area saw a notable shift in ownership percentages, while average home prices and average rent prices demonstrated consistent upward trends.
The homeownership rate in zip code 78751 fluctuated between 2013 and 2022. Starting at 24% in 2013, it rose to a peak of 31% in 2018 and 2019, before declining to 24% by 2022. During this same period, average home prices in the area increased substantially. In 2013, the average home price was $328,795, and by 2022, it had more than doubled to $751,302. This inverse relationship suggests that rising home prices may have contributed to the decline in homeownership rates in recent years, as affordability became a growing concern for potential buyers.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.09% to 0.40%), homeownership in the zip code increased from 24% to 30%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized and then declined slightly, ending at 24% in 2022.
Renter percentages in zip code 78751 showed an inverse relationship to homeownership rates, naturally. The area has consistently been dominated by renters, with the percentage ranging from 69% to 77% between 2013 and 2022. Average rent prices in the zip code have steadily increased over this period. In 2013, the average rent was $884, and by 2022, it had risen to $1,528, representing a 73% increase. This significant rise in rent prices occurred despite fluctuations in the renter population, suggesting strong demand for rental properties in the area.
In 2023 and 2024, we observe a shift in the housing market for zip code 78751. The average home price decreased from its peak of $751,302 in 2022 to $692,410 in 2023, and further to $667,427 in 2024. This represents a 11.2% decrease over two years. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, likely contributing to the cooling of home prices.
Looking ahead, based on recent trends and market conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 78751. Average home prices may experience a period of stabilization or modest growth, potentially reaching around $725,000 by 2029. Average rent prices are likely to continue their upward trajectory, albeit at a potentially slower rate, and could reach approximately $1,800 by 2029.
In summary, zip code 78751 has experienced significant changes in its housing market over the past decade. The area has seen substantial increases in both average home prices and average rent prices, while homeownership rates have fluctuated. The recent cooling of home prices, coupled with rising interest rates, suggests a potential shift in the market dynamics. These trends underscore the evolving nature of the housing market in this Austin neighborhood and highlight the importance of monitoring these factors for both current and prospective residents.
