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Rising Home Values and Ownership Trends in Zip Code 72023: Cabot's Dynamic 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 72023, located in Cabot, Arkansas, has experienced significant demographic and housing market shifts 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 72023 has shown a slight decline followed by a recent uptick. In 2013, the homeownership rate stood at 72%, gradually decreasing to 66% by 2017. However, the trend reversed in recent years, with homeownership rising to 70% in 2022. This pattern coincides with changes in average home prices, which have seen substantial growth. The average home price in 2010 was $158,348, remaining relatively stable until 2015. From 2015 onwards, there was a steady increase, with the average home price reaching $221,865 in 2022, representing a 40% increase over 12 years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 72023. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates remained relatively high, likely due to more affordable financing options. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a corresponding dip in homeownership rates. However, the recent uptick in homeownership despite higher interest rates suggests other factors, such as local economic conditions or housing supply, may be influencing the market.
Renter percentages in zip code 72023 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership decreased. The renter population grew from 28% in 2013 to a peak of 34% in 2017, before settling at 30% in 2022. Average rent prices have fluctuated over this period, with notable increases. In 2013, the average rent was $1,012, rising to $1,116 in 2016, an increase of over 10% in just three years. Despite some fluctuations, including a drop to $969 in 2020, possibly due to the economic impact of the COVID-19 pandemic, average rent reached $1,126 in 2021 before decreasing to $958 in 2022. These rent trends appear to be influenced by both the local housing market dynamics and the overall population growth in the area, which increased from 30,794 in 2010 to 36,376 in 2022.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 72023. In 2023, the average home price reached $232,991, a significant increase from the 2022 figure. This upward trend continued into 2024, with average home prices rising to $239,866. Simultaneously, federal interest rates have increased substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing market dynamics in the area.
Looking ahead, predictive models suggest that average home prices in zip code 72023 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices may also see moderate increases, driven by population growth and housing demand. However, the rate of increase for both home prices and rents may be tempered by economic factors and affordability concerns.
In summary, zip code 72023 has experienced a complex interplay of homeownership rates, average home prices, and rent trends over the past decade. The area has seen overall growth in property values and a recent resurgence in homeownership rates, despite rising interest rates. The rental market has remained significant, with fluctuating but generally increasing rent prices. As the area continues to grow and evolve, these housing market dynamics will likely remain a crucial factor in shaping the community's future.
