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Rising Home Values and High Ownership Rates: A Closer Look at Zip Code 46781 in Keystone, Indiana
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 46781, located in Keystone, Indiana, presents an intriguing case study of homeownership trends and housing market dynamics. This small community has experienced significant fluctuations in its population and homeownership rates over the past decade, with a generally high percentage of owner-occupied homes and steadily increasing average home prices.
The ownership percentage in zip code 46781 has remained consistently high, averaging around 91% between 2013 and 2022. During this period, average home prices have shown a steady upward trend. In 2011, the average home price was $111,134, which increased to $197,762 by 2022, representing a substantial 78% growth over 11 years. This positive correlation between high homeownership rates and rising home prices suggests a stable and desirable housing market in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 46781. From 2011 to 2016, when interest rates were exceptionally low (ranging from 0.1% to 0.4%), homeownership rates remained high, fluctuating between 90% and 95%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's worth noting that even as interest rates began to rise from 2017 onwards, homeownership rates in this zip code remained relatively stable, suggesting other factors contributing to the area's strong ownership culture.
Renter percentages in zip code 46781 have remained relatively low, ranging from 5% to 12% between 2013 and 2022. The low renter percentages, coupled with the area's fluctuating population (from a peak of 898 in 2014 to 565 in 2022), suggest a limited rental market. This could be due to a combination of factors, including a preference for homeownership in the community and possibly a limited supply of rental properties.
In 2023, the average home price in zip code 46781 reached $206,645, continuing the upward trend observed in previous years. This represents a 4.5% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in previous years. Moving into 2024, the average home price has further increased to $215,547, a 4.3% rise from 2023. The federal interest rate for 2024 stands at 5.33%, indicating a continued tightening of monetary policy.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 46781 will likely continue to rise over the next five years. Assuming a conservative annual growth rate of 4%, which is slightly lower than the recent year-over-year increases, we could expect the average home price to reach approximately $262,000 by 2029. However, this projection should be considered in the context of potential economic changes and shifts in local market conditions.
In summary, zip code 46781 demonstrates a strong preference for homeownership, with consistently high owner-occupancy rates despite fluctuations in population. The steady increase in average home prices, even in the face of rising interest rates, suggests a robust and desirable housing market in this area. The limited rental market and the community's resilience to interest rate changes highlight the unique characteristics of this zip code's housing landscape.
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