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Rising Home Values and Fluctuating Ownership in Las Vegas Zip Code 89106: A Decade of Real Estate Dynamics
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 89106, located in Las Vegas, Nevada, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of decreasing homeownership and rising housing costs, reflecting broader economic shifts in the region. The homeownership rate in zip code 89106 has shown a downward trend since 2013. In 2013, the area had a 33% homeownership rate, which declined to 29% by 2017 and remained relatively stable through 2020. There was a slight increase to 32% in 2022, but this remains below the 2013 levels. Concurrently, average home prices in the area have experienced substantial growth. In 2013, the average home price was $81,779, which more than doubled to $195,617 by 2018. This upward trend continued, with average home prices reaching $326,422 in 2022, representing a nearly 300% increase over a decade.
The inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for residents in this zip code. This trend aligns with periods of lower federal interest rates, which typically encourage home buying. However, in this case, the rapid increase in home prices appears to have outpaced the benefits of lower interest rates for many potential homebuyers.
As homeownership rates declined, the percentage of renters in zip code 89106 increased. The renter-occupied rate rose from 66% in 2013 to 71% in 2020, before slightly decreasing to 68% in 2022. Average rent prices have also shown an upward trend, albeit less dramatic than home prices. In 2013, the average rent was $913, which increased to $975 by 2020, and further to $992 in 2022. This represents an overall increase of about 8.7% in average rent prices over the decade.
The data for 2023 and 2024 shows some interesting developments. In 2023, the average home price in zip code 89106 slightly decreased to $318,739 from the 2022 peak. However, in 2024, it rebounded to $332,145, surpassing the 2022 level. This coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 89106 may continue to rise over the next five years, potentially reaching around $380,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. These projections are based on historical trends and current economic indicators.
In summary, zip code 89106 has experienced a significant shift towards a renter-majority population over the past decade, coinciding with substantial increases in average home prices. While rent prices have also risen, the increase has been more moderate. The recent uptick in federal interest rates and the continued rise in housing costs suggest that the area may face ongoing challenges in terms of housing affordability and homeownership accessibility in the coming years.
