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Rising Home Values and Ownership Trends in Zip Code 55442: Plymouth's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 55442, located in Plymouth, Minnesota, presents an interesting case study of homeownership and rental trends over the past decade. This suburban area has experienced notable shifts in its housing market, with a general trend towards increased homeownership and rising property values.
The percentage of owner-occupied housing in zip code 55442 has shown a steady increase from 73% in 2013 to 78% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $269,867, which grew to $446,206 by 2022, representing a substantial 65.3% increase over nine years. This correlation suggests that despite rising home prices, more residents in this area have been able to transition into homeownership.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership increased from 73% to 76%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more significantly from 2017 onwards, homeownership in this area continued to increase, reaching 78% by 2022, indicating other factors may be influencing this trend.
Conversely, the percentage of renter-occupied housing has decreased from 26% in 2013 to 22% in 2022. Despite this decline in the renter population, average rent prices have shown a consistent upward trend. The average rent increased from $1,376 in 2013 to $1,780 in 2022, a 29.4% increase. This rise in rent prices, coupled with a decreasing renter population, suggests a tightening rental market in the area, possibly due to limited rental inventory or increasing demand for higher-quality rental properties.
Looking at the most recent data, the average home price in zip code 55442 reached $451,332 in 2023 and further increased to $456,040 in 2024. This continuing upward trend in home prices occurs despite the significant rise in interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a resilient housing market in this area, where demand for homes remains strong even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in zip code 55442 to continue their upward trajectory, potentially reaching around $500,000 by 2029. Rent prices are also likely to increase, possibly surpassing $2,000 per month on average within the same timeframe. However, the rate of increase may moderate compared to the rapid growth seen in recent years.
In summary, zip code 55442 has demonstrated a strong trend towards homeownership, with a consistent increase in both the percentage of owner-occupied homes and average home prices. The rental market, while shrinking in terms of occupancy, has seen significant price increases. These trends, coupled with the area's ability to maintain growth in home values even during periods of higher interest rates, suggest a robust and desirable housing market in this Plymouth suburb.
