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Rising Home Values and High Ownership Rates: A Decade of Change in Zip Code 56011, Belle Plaine
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 56011, located in Belle Plaine, Minnesota, has experienced notable shifts in homeownership rates and property values over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with a slight increase in recent years, while average home prices and average rent have generally trended upward. The homeownership rate in zip code 56011 has remained relatively stable, with a slight upward trend. In 2013, the owner-occupied rate was 86%, which increased to 90% by 2020, before settling at 86% in 2022. This trend correlates with the rise in average home prices, which saw significant growth from $169,837 in 2010 to $346,483 in 2022, representing a 104% increase over 12 years. The relationship between homeownership rates and average home prices suggests that despite rising costs, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a role in shaping homeownership trends in zip code 56011. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained high, likely supported by favorable borrowing conditions. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates showed resilience, maintaining around 87-88%. This suggests that other factors, such as local economic conditions or housing preferences, may have a strong influence on homeownership in this area.
Renter percentages in zip code 56011 have fluctuated slightly, ranging from 10% to 14% between 2013 and 2022. Average rent prices have shown an overall upward trend, increasing from $1,137 in 2013 to $1,440 in 2022, a 26.6% rise over nine years. The population growth from 8,173 in 2013 to 8,912 in 2022 may have contributed to the increased demand for rental properties, supporting the rise in average rent prices despite the relatively stable renter percentage.
In 2023, the average home price in zip code 56011 experienced a slight decrease to $343,781, down 0.8% from 2022. However, 2024 shows a recovery with the average home price rising to $349,279. This rebound occurs despite the significant increase in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and property values in the area.
Looking ahead, predictive models suggest that average home prices in zip code 56011 may continue to rise moderately over the next five years, potentially reaching around $380,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,600 by 2029. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 56011 has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience in maintaining homeownership levels despite rising home prices and fluctuating interest rates. The rental market, while smaller, has also seen consistent growth in average rents. As the area continues to grow, both the ownership and rental markets are likely to remain dynamic, with potential for further price appreciation in both sectors.
