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Rising Home Values and Changing Ownership in Zip Code 85539: A Decade of Housing Trends in Top-of-the-World, Arizona
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
The zip code 85539, located in Top-of-the-World, Arizona, presents an intriguing case study of housing market dynamics in a rural setting. This area has experienced significant fluctuations in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions.
Homeownership rates in zip code 85539 have remained relatively stable, hovering around 71-74% between 2013 and 2022. However, there have been notable fluctuations in average home prices during this period. In 2013, the average home price was $79,939, which steadily increased to $157,239 by 2022, representing a substantial 96.7% increase over nine years. This upward trend in home prices did not significantly impact homeownership rates, suggesting that other factors, such as local economic conditions or demographic shifts, may have played a role in maintaining stable ownership levels.
The relationship between federal interest rates and homeownership rates in this zip code is less straightforward than typically observed. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), homeownership rates remained relatively constant. This suggests that in this particular area, factors other than interest rates, such as local employment opportunities or housing supply, may have had a more significant influence on homeownership decisions.
Renter percentages in zip code 85539 have fluctuated slightly, ranging from 26% to 29% between 2013 and 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $875, which peaked at $896 in 2014 before declining to $749 in 2017. Since then, rent prices have gradually increased, reaching $805 in 2022. This trend does not directly correlate with the renter percentage, indicating that other factors, such as local economic conditions or changes in housing stock, may be influencing rental market dynamics.
In 2023 and 2024, the housing market in zip code 85539 experienced some significant changes. The average home price decreased from $157,239 in 2022 to $142,225 in 2023, representing a 9.5% decline. However, there was a slight recovery in 2024, with the average home price increasing to $149,109, a 4.8% rise from the previous year. Concurrently, federal interest rates rose sharply, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and market dynamics in the area.
Looking ahead, based on historical trends and current market conditions, we can anticipate some potential developments in the housing market for zip code 85539. Average home prices are likely to continue their overall upward trajectory, albeit at a more moderate pace than seen in previous years. We project that by 2029, average home prices could reach approximately $175,000 to $185,000, assuming a conservative annual growth rate of 3-4%. Rent prices are expected to follow a similar pattern, potentially increasing to around $900-$950 by 2029, based on historical trends and accounting for inflation.
In summary, zip code 85539 has demonstrated resilience in homeownership rates despite significant fluctuations in home prices and interest rates. The area has experienced substantial growth in property values over the past decade, with a recent adjustment in 2023-2024. Rental markets have shown volatility, but with a general upward trend in recent years. These trends highlight the complex interplay of local and national economic factors in shaping the housing market dynamics of this Arizona community.
