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Rising Home Values and Shifting Ownership in Zip Code 66543: A Decade of Change in Rural Kansas
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 66543, located in Vassar, Kansas, presents an intriguing case study of housing trends in a small, rural community. This area has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic shifts and local demographic changes.
The homeownership rate in zip code 66543 has shown remarkable resilience, maintaining a high level throughout the observed period. In 2013, the area boasted a 92% homeownership rate, which slightly declined to 83% by 2020 but rebounded to 90% in 2022. This trend coincides with a steady increase in average home prices, which rose from $100,744 in 2012 to $190,964 in 2022, representing a substantial 89.6% increase over a decade.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates actually decreased slightly from 92% to 90%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the area remained robust, even increasing to 90% in 2022. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have a stronger influence on homeownership in this particular community.
Renter percentages and average rent prices in zip code 66543 have shown some volatility. The renter-occupied rate increased from 7% in 2013 to a peak of 17% in 2020, before decreasing to 10% in 2022. Interestingly, average rent prices did not always move in tandem with renter percentages. For instance, while the renter percentage peaked in 2020, the average rent that year was $932, lower than the $974 observed in 2019 when the renter percentage was 17%. The highest average rent of $1,066 was recorded in 2021, coinciding with a decrease in the renter percentage to 14%.
In 2023 and 2024, average home prices in zip code 66543 continued their upward trajectory, reaching $196,817 in 2023 and $204,464 in 2024. This represents a 7.1% increase from 2022 to 2024. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. Despite these higher interest rates, home prices have continued to appreciate, suggesting strong demand or limited supply in the area.
Looking ahead, our predictive models forecast a continued increase in average home prices for zip code 66543 over the next five years, albeit at a more moderate pace. We anticipate average home prices could reach approximately $230,000 by 2029, representing a potential 12.5% increase from 2024 levels. Average rent prices are also expected to rise, potentially reaching around $1,200 per month by 2029, reflecting a gradual increase in line with historical trends and anticipated economic factors.
In summary, zip code 66543 demonstrates a strong preference for homeownership, with rates consistently above 80% despite fluctuations in home prices and interest rates. The area has seen significant appreciation in home values over the past decade, a trend that is expected to continue, albeit at a more modest pace. Rent prices and renter percentages have shown more volatility, influenced by local economic conditions and housing supply dynamics. The resilience of the housing market in this zip code, even in the face of rising interest rates, suggests a stable and desirable living environment that continues to attract homeowners.
