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Rising Home Values and High Ownership Rates in Zip Code 52214: A Rural Iowa Housing Market Analysis
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 52214, located in Central City, Iowa, presents an intriguing landscape of homeownership and housing market dynamics. This area has experienced notable shifts in ownership percentages, average home prices, and average rent prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 52214 has shown a gradual increase from 2013 to 2022. In 2013, the homeownership rate stood at 77%, and by 2022, it had risen to 83%. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $148,047, and by 2022, it had risen to $251,235, representing a substantial 69.7% increase over this period. The most dramatic year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $196,962 to $220,409, a 11.9% increase in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 52214. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. These low rates likely contributed to the steady increase in homeownership, making mortgage financing more affordable for potential buyers. The sharp increase in homeownership from 82% in 2019 to 84% in 2020 coincided with a significant drop in the federal interest rate from 2.16% in 2019 to 0.38% in 2020, further illustrating this relationship.
As homeownership rates increased, the percentage of renters in zip code 52214 naturally decreased. In 2013, renters made up 23% of the population, which declined to 17% by 2022. Despite this decrease in the renter population, average rent prices showed an overall upward trend. In 2013, the average rent was $686, which fluctuated over the years but ultimately rose to $687 by 2022. Interestingly, the highest average rent of $733 was recorded in 2021, possibly reflecting increased demand or economic pressures during that period.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 52214. In 2023, the average home price reached $259,838, a 3.4% increase from 2022. As of 2024, the average home price stands at $262,899, showing a more modest 1.2% increase from the previous year. This slower rate of increase may be influenced by the higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Looking ahead, predictive models suggest that average home prices in zip code 52214 may continue to rise over the next five years, but at a more moderate pace. By 2029, average home prices could potentially reach around $285,000 to $295,000, assuming current trends persist. Average rent prices are also expected to increase, potentially reaching $725 to $750 by 2029, reflecting ongoing demand for rental properties despite the strong homeownership trend.
In summary, zip code 52214 has demonstrated a robust trend towards homeownership, with a corresponding increase in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with low interest rates supporting increased homeownership and rising home values. While the rental market has shrunk in terms of population percentage, rent prices have remained relatively stable with a slight upward trend. The recent slowdown in home price appreciation, coupled with rising interest rates, suggests a potential shift towards a more balanced housing market in the coming years.
