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Rising Home Values and Shifting Ownership in Houston's 77079 Zip Code: A 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 77079, located in Houston, Texas, has experienced significant changes in homeownership, average home prices, and average rent prices over the past decade. This area has seen a gradual shift from owner-occupied housing to a more balanced mix of owners and renters, accompanied by substantial increases in both average home values and average rent prices.
The ownership percentage in zip code 77079 has shown a consistent downward trend from 2013 to 2022. In 2013, 62% of housing units were owner-occupied. This figure remained relatively stable until 2017, after which it began to decline more rapidly. By 2022, the ownership rate had fallen to 55%, a decrease of 7 percentage points over nine years. Interestingly, this decline in homeownership coincided with a significant increase in average home prices. In 2013, the average home price in the area was $370,641. By 2022, this figure had risen to $582,880, representing a 57% increase over the period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents, contributing to the decline in owner-occupied housing.
Federal interest rates have played a role in shaping homeownership trends in zip code 77079. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, likely due to the affordability of mortgage financing. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline more rapidly. This trend aligns with the general principle that higher interest rates can make homeownership less affordable, potentially contributing to the shift towards renting in the area.
As homeownership rates declined, the percentage of renters in zip code 77079 increased correspondingly. In 2013, 35% of housing units were renter-occupied. This figure rose steadily over the years, reaching 45% by 2022, a 10 percentage point increase. The average rent prices in the area also saw a significant upward trend during this period. In 2013, the average rent was $1,308 per month. By 2022, it had increased to $1,726, representing a 32% rise over nine years. The population of the zip code also grew during this time, from 31,012 in 2013 to 33,827 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in average rent prices.
Looking at more recent data, the average home price in zip code 77079 continued to rise in 2023 and 2024, reaching $618,069 and $649,087 respectively. This represents a further 11% increase from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with the continued increase in home prices, may further impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in zip code 77079 will continue to rise, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach approximately $750,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $2,100 per month in the same timeframe, driven by ongoing population growth and the shift towards renting in the area.
In summary, zip code 77079 has experienced a notable shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home values and average rent prices. This trend has been influenced by rising property values, changing interest rates, and population growth. As the area continues to evolve, it's likely to see further increases in both home prices and rent, potentially reinforcing the trend towards a more balanced mix of owners and renters in the coming years.
