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Rising Home Values and Shifting Ownership in Zip Code 55130: St. Paul's Decade of Housing Transformation
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 55130, located in St. Paul, Minnesota, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a notable shift in the balance between owners and renters, accompanied by fluctuations in property values and rental costs.
The homeownership rate in zip code 55130 has shown a remarkable increase from 36% in 2017 to 46% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2017, the average home price was $159,949, which steadily climbed to $244,567 by 2022, representing a 52.9% increase over five years. This correlation suggests that despite rising home prices, more residents were able to transition into homeownership.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting case. From 2017 to 2020, interest rates fluctuated between 1% and 2.16%, while homeownership rates remained relatively stable around 37-38%. However, as interest rates dropped to historic lows of 0.08% in 2021, homeownership began to increase significantly, reaching 44% that year. This trend continued into 2022, with homeownership reaching 46% despite interest rates rising to 1.68%, indicating a potential lag effect from the previous year's low rates.
Renter percentages in zip code 55130 have inversely mirrored the homeownership trends, decreasing from 64% in 2017 to 54% in 2022. Interestingly, average rent prices have continued to rise during this period, from $957 in 2017 to $1,007 in 2022, an increase of 5.2%. This suggests that despite decreasing demand for rentals, other factors such as overall housing market pressures and inflation have kept rent prices on an upward trajectory.
In 2023 and 2024, the average home prices in zip code 55130 showed a slight decrease followed by a minor rebound. The average home price in 2023 was $242,200, a 1% decrease from 2022. However, in 2024, prices rose slightly to $245,741, a 1.5% increase from 2023. This period also saw a significant jump in interest rates, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the temporary stagnation in home prices.
Looking ahead, predictive models suggest that average home prices in zip code 55130 may continue to rise moderately over the next five years, potentially reaching around $270,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 55130 has demonstrated a strong shift towards homeownership despite rising home prices. The area has shown resilience in its housing market, with both ownership rates and property values increasing over time. The rental market, while experiencing a decrease in the percentage of renters, has maintained upward pressure on rent prices. These trends, combined with the recent stabilization in home prices and high interest rates, suggest a dynamic and evolving housing landscape in this St. Paul neighborhood.
