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Rising Home Values and Ownership in Franklin's Zip Code 46131: A Decade of Housing Market Growth
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
Franklin, located in zip code 46131 in Indiana, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership versus renting and their relationship to average housing and rent prices in this area.
The homeownership rate in Franklin has shown a general upward trend from 2013 to 2022. In 2013, the ownership rate was 69%, which increased to 74% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $116,127, which more than doubled to $248,213 by 2022. This significant appreciation in home values likely contributed to the growing preference for homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Franklin remained relatively stable, ranging from 67% to 69%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased from 69% to 74%. This suggests that despite rising interest rates, other factors such as local economic conditions and housing market dynamics may have had a stronger influence on homeownership decisions in Franklin.
The rental market in Franklin has shown an inverse relationship to homeownership trends. The percentage of renters decreased from 31% in 2013 to 26% in 2022. Interestingly, average rent prices fluctuated during this period. In 2013, the average rent was $1,049, which decreased to $966 by 2017. However, rent prices then began to climb, reaching $1,116 by 2022. This increase in rent prices, coupled with the growing homeownership rate, suggests that owning a home became increasingly attractive compared to renting in Franklin.
The year 2023 saw a continuation of the upward trend in average home prices, reaching $257,105. This represents a 3.6% increase from 2022. In 2024, the average home price further increased to $263,393, a 2.4% rise from 2023. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices in Franklin continued to appreciate, albeit at a slower pace than in previous years.
Looking ahead, predictive models suggest that average home prices in Franklin may continue to rise over the next five years, but at a more moderate rate. Based on historical trends and current market conditions, average home prices could potentially reach around $300,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,300 per month within the same timeframe.
In summary, Franklin has experienced a notable increase in homeownership rates and average home prices from 2013 to 2024. Despite rising federal interest rates, the local housing market has remained robust, with homeownership becoming increasingly prevalent. The rental market has seen a decline in the percentage of renters, even as average rent prices have generally increased. These trends suggest a strong preference for homeownership in Franklin, driven by factors such as local economic conditions and the potential for home value appreciation.
