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Rising Home Values and Ownership in Zip Code 81652: Silt, Colorado's Decade of Change
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 81652, located in Silt, Colorado, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 81652 has shown some variability over the years, with a general trend towards increased ownership. In 2013, the homeownership rate stood at 74%, and by 2022, it had increased to 77%. This uptick in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $223,318, and by 2022, it had more than doubled to $533,478. This significant increase in home values may have incentivized more residents to invest in property, despite the potential challenges of affordability for some buyers.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 81652. 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 at around 74-75%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight increase in homeownership to 77%. This suggests that despite rising interest rates, other factors such as strong local economic conditions or the desire to lock in home purchases before further price increases may have influenced buying decisions.
The rental market in zip code 81652 has also experienced notable changes. The percentage of renters decreased from 26% in 2013 to 23% in 2022. However, average rent prices have shown an upward trend. In 2013, the average rent was $1,368, and by 2022, it had increased to $1,456, representing a 6.4% rise over nine years. This increase in rent prices, coupled with the decrease in the proportion of renters, suggests that while fewer people are renting, those who do are paying more. The population growth from 4,136 in 2013 to 5,301 in 2022 may have contributed to increased demand for rental properties, potentially driving up prices despite the overall decrease in the renter population.
As of 2024, the average home price in zip code 81652 has reached $580,278, continuing the upward trend observed in previous years. This represents a 4.3% increase from the 2023 average of $556,184. Concurrently, federal interest rates have risen to 5.33% in 2024, up from 5.02% in 2023. These higher interest rates may impact affordability and potentially slow down the pace of home price appreciation in the near future.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 81652 may continue to rise, albeit at a potentially slower rate due to higher interest rates. Over the next five years, we might expect average home prices to reach approximately $650,000 to $700,000, assuming a moderate annual growth rate of 2-3%. Average rent prices could potentially increase to around $1,600 to $1,700 per month in the same period, reflecting ongoing demand for rental properties in the area.
In summary, zip code 81652 has experienced a significant increase in homeownership rates and average home prices over the past decade. The rental market has seen a decrease in the proportion of renters but an increase in average rent prices. The interplay between federal interest rates, local economic conditions, and population growth has shaped these trends. As we move forward, the area is likely to continue seeing growth in both home values and rent prices, albeit potentially at a more moderate pace due to rising interest rates and evolving market dynamics.
