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Rising Home Values and Ownership in Zip Code 42104: Bowling Green's Evolving Housing Market
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 42104, located in Bowling Green, Kentucky, has experienced significant demographic and housing market changes over the past decade. This area has seen a steady increase in population and homeownership rates, alongside fluctuations in average home prices and rent costs.
The homeownership rate in zip code 42104 has shown a general upward trend, rising from 60% in 2013 to 62% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $167,235, which steadily climbed to $293,914 by 2022, representing a 75.7% increase over nine years. This trend suggests a growing demand for homeownership in the area, despite the rising costs.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 42104. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 58% to 60%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a noticeable increase in homeownership, reaching 64% in 2019. This suggests that despite higher interest rates, other factors such as local economic conditions and housing market dynamics were favorable for homeownership.
Renter percentages in zip code 42104 have fluctuated inversely to homeownership rates, decreasing from 38% in 2013 to 35% in 2019, before rising slightly to 38% in 2022. Average rent prices have shown an overall upward trend, increasing from $979 in 2013 to $1,029 in 2022, with some fluctuations in between. The highest average rent was recorded in 2020 at $1,130, coinciding with a population increase to 36,782. This suggests that population growth may have contributed to increased rental demand and prices.
In 2023, the average home price in zip code 42104 reached $308,630, a 5% increase from 2022, while federal interest rates rose significantly to 5.02%. As of 2024, the average home price has further increased to $313,888, with interest rates climbing to 5.33%. This continued rise in both home prices and interest rates indicates a robust housing market in the area, despite potentially higher borrowing costs for homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 42104 may continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 42104 has demonstrated a resilient housing market with increasing homeownership rates and rising property values. The area has shown the ability to maintain growth in both home prices and rent costs, even in the face of fluctuating interest rates. The consistent population growth and the balance between owner-occupied and renter-occupied housing suggest a diverse and dynamic real estate market in this part of Bowling Green, Kentucky.
