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Homeownership Decline and Rising Values: A Decade of Change in Zip Code 66835, Americus, Kansas
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 66835, located in Americus, Kansas, presents an intriguing case study of housing trends in a small Midwestern community. This area has experienced significant fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic shifts and local demographic changes.
The homeownership rate in zip code 66835 has shown a general downward trend since 2013. In 2013, the area boasted a high 89% homeownership rate. However, by 2022, this figure had decreased to 74%. This decline coincided with a steady increase in average home prices. In 2013, the average home price was $95,989, but by 2022, it had risen to $156,400, representing a substantial 63% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, staying above 85%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling from 81% in 2017 to 74% in 2022.
As homeownership rates decreased, the percentage of renters in zip code 66835 naturally increased. In 2013, only 11% of residents were renters, but by 2022, this figure had more than doubled to 26%. This shift coincided with a dramatic rise in average rent prices. In 2013, the average rent was $408, but by 2022, it had nearly doubled to $770. This increase in rent prices occurred despite fluctuations in the local population, which decreased from 821 in 2013 to 859 in 2022, suggesting that factors beyond simple supply and demand were influencing the rental market.
The year 2023 saw a continuation of the upward trend in average home prices, reaching $161,995. This trend persisted into 2024, with average home prices climbing to $165,502. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers in the area, potentially impacting future homeownership rates.
Looking ahead, predictive models suggest that average home prices in zip code 66835 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and the overall appreciation of property values in the area.
In summary, zip code 66835 has experienced a notable shift from a predominantly homeowner community to one with a growing renter population. This transition has been accompanied by significant increases in both average home prices and rent costs. The interplay between federal interest rates, local economic conditions, and demographic changes will likely continue to shape the housing market in this Kansas community in the coming years.
