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Rising Home Values and Ownership in Zip Code 72135: A Decade of Growth in Roland, Arkansas
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 72135, located in Roland, Arkansas, presents an intriguing case study of homeownership and housing market dynamics. This area has experienced significant fluctuations in both ownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising average home values.
The homeownership rate in zip code 72135 has shown a notable increase from 79% in 2016 to 84% in 2022, indicating a growing preference for owning rather than renting among residents. This trend has coincided with a substantial rise in average home prices, which grew from $238,288 in 2016 to $311,700 in 2022, representing a 30.8% increase over six years. The correlation between rising homeownership rates and increasing home prices suggests a strong demand for housing in the area, potentially driven by factors such as local economic growth or improved amenities.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 72135. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely contributed to the increase in homeownership from 79% to 83% during this time. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. The slight dip in homeownership to 80% in 2019 may be attributed to the higher interest rate of 2.16% that year, which could have temporarily deterred some potential buyers.
Renter percentages in zip code 72135 have inversely mirrored the homeownership trends, declining from 20% in 2016 to 16% in 2022. Interestingly, average rent prices have shown significant volatility during this period. The average rent peaked at $1,293 in 2015 and 2017, before experiencing a sharp decline to $824 in 2022. This decrease in average rent, coupled with the declining renter percentage, suggests a shift in the local housing market dynamics, possibly influenced by an increase in housing supply or changes in local economic conditions.
The years 2023 and 2024 have brought new developments to the housing market in zip code 72135. Average home prices continued to rise, reaching $312,967 in 2023 and $329,293 in 2024, marking a 5.2% increase from 2022 to 2024. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. The continued rise in home prices despite higher interest rates suggests strong underlying demand in the local housing market.
Looking ahead, predictive models forecast a continued upward trend in average home prices for zip code 72135 over the next five years. Based on the historical data and current market conditions, average home prices could potentially reach around $370,000 to $390,000 by 2029. Average rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching $1,300 to $1,400 per month in the same timeframe.
In summary, zip code 72135 has demonstrated a clear trend towards increased homeownership and rising home values over the past decade. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. The declining renter percentage and fluctuating rent prices indicate a shifting rental market landscape. As the community continues to evolve, these trends suggest a strong and potentially growing demand for homeownership in the area, which could have significant implications for local development and community dynamics in the coming years.
