Loading Content...
Rising Home Values and Declining Ownership in Zip Code 75114: A Decade of Change in Crandall, Texas
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 75114, located in Crandall, Texas, has experienced significant changes in population, homeownership rates, and housing prices over the past decade. This area has seen substantial growth, with its population increasing from 4,704 in 2010 to 9,001 in 2022, more than doubling in just 12 years. The trends in homeownership and housing prices have been dynamic, reflecting both local and national economic factors.
The homeownership rate in zip code 75114 has shown a slight decline over the years, dropping from 89% in 2013 to 81% in 2022. Despite this decrease, the area maintains a high rate of homeownership compared to national averages. Interestingly, this trend coincides with a significant increase in average home prices. In 2013, the average home price was $112,182, which steadily rose to $286,525 by 2022, representing a 155% increase over nine years. This substantial appreciation in home values may have contributed to the slight decrease in homeownership, as higher prices could have made it more challenging for some residents to enter the housing market.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period from 2013 to 2016 saw relatively low interest rates (0.11% to 0.4%) and stable homeownership rates around 86-89%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a corresponding decrease in homeownership rates from 82% to 80%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 75114 have increased from 11% in 2013 to 19% in 2022, mirroring the decline in homeownership. Average rent prices have fluctuated over this period, starting at $1,340 in 2013, dropping to a low of $1,069 in 2016, and then rising again to $1,286 in 2022. The increase in renter percentages, despite fluctuating rent prices, may be attributed to the rapidly growing population and the rising home prices, which could have pushed more residents towards renting.
In 2023 and 2024, we see a slight reversal in the upward trend of average home prices in zip code 75114. The average home price decreased from $286,525 in 2022 to $281,813 in 2023 and further to $276,991 in 2024. This decline coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to cooling the housing market in this area.
Looking ahead, based on the historical data and recent trends, we can predict that average home prices in zip code 75114 may continue to experience a slight downward adjustment in the next 1-2 years due to the high interest rates. However, given the area's strong population growth and historical appreciation, prices are likely to stabilize and potentially start rising again in 3-5 years, especially if interest rates begin to decrease. For rent prices, we can expect a moderate increase over the next 5 years, driven by population growth and the potential shift towards renting if home buying remains challenging due to high interest rates.
In summary, zip code 75114 has experienced remarkable population growth, accompanied by substantial increases in average home prices from 2013 to 2022. While homeownership rates have slightly declined, they remain high. The area is currently adapting to higher interest rates, which have begun to impact home prices. The interplay between population growth, housing prices, and economic factors will continue to shape the real estate landscape in this dynamic Texas community.
