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Rising Home Values and High Ownership Rates in ZIP Code 66042: A Decade of Stability in Lane, Kansas
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 66042, located in Lane, Kansas, presents an interesting case study of homeownership and housing market dynamics in a small, rural community. Over the past decade, this area has experienced fluctuations in its ownership rates and housing prices, reflecting broader economic trends and local factors.
The homeownership rate in zip code 66042 has remained relatively stable, hovering around 85-90% throughout the observed period. In 2013, the ownership rate stood at 87%, and by 2022, it maintained a similar level at 87%. Despite this overall stability, there were some minor fluctuations, with the lowest ownership rate of 85% occurring in 2018 and 2020. Interestingly, these changes in homeownership coincided with shifts in average home prices. The average home price in the area increased from $88,109 in 2013 to $239,117 in 2022, representing a substantial 171% increase over this period.
Federal interest rates appear to have influenced homeownership rates in the area, albeit to a limited extent. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained high, ranging from 87% to 90%. However, as interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership rates, dropping to 85% in 2018 when the interest rate reached 1.83%.
The renter population in zip code 66042 has remained relatively small, typically comprising 10-15% of the total households. Average rent prices have shown some volatility over the years. In 2013, the average rent was $1,037, which decreased to $895 in 2016. However, rent prices began to climb again, reaching $1,026 in 2022. This represents a modest overall decrease of 1.1% from 2013 to 2022, despite the fluctuations in between. The population of the area has also fluctuated, from a low of 470 in 2017 to a high of 564 in 2020, which may have influenced rental demand and prices.
In 2023 and 2024, the housing market in zip code 66042 continued to evolve. The average home price rose to $246,931 in 2023 and further increased to $256,317 in 2024, representing a 3.3% and 3.8% year-over-year increase respectively. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting mortgage affordability for prospective buyers.
Looking ahead, based on the observed trends and current economic conditions, we can project potential scenarios for the next five years. Average home prices in zip code 66042 may continue to rise, albeit at a more moderate pace due to the higher interest rate environment. We might expect average home prices to reach around $300,000 by 2029. Average rent prices could also see modest increases, potentially reaching $1,200 per month by 2029, assuming steady population growth and limited new rental supply in this rural area.
In summary, zip code 66042 has maintained a high rate of homeownership despite significant increases in average home prices. The area has shown resilience in its housing market, with steady growth in property values and relatively stable rent prices. The coming years may bring continued appreciation in both home values and rents, albeit at a potentially slower pace due to higher interest rates and economic factors.
