Loading Content...
Rising Home Values and Shifting Ownership in Zip Code 70343: Bourg's Housing Market Dynamics
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 70343, located in Bourg, Louisiana, presents an interesting case study of homeownership and housing market dynamics in a small community. Over the past decade, this area has experienced fluctuations in both ownership rates and housing prices, with a general trend towards increasing average home values and a slight decline in homeownership rates.
The homeownership rate in zip code 70343 has shown a gradual decline from 90% in 2013 to 82% in 2022. During this same period, average home prices have risen significantly, from $167,180 in 2013 to $211,243 in 2022, representing a 26.4% increase. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents. For instance, in 2018, when the homeownership rate peaked at 90%, the average home price was $182,182. By 2022, as home prices reached $211,243, the ownership rate had dropped to 82%.
Federal interest rates have played a role in shaping homeownership trends in zip code 70343. The period of historically low interest rates from 2013 to 2021, with rates ranging from 0.08% to 0.4%, coincided with relatively high homeownership rates above 84%. However, as interest rates began to rise in 2022 to 1.68%, we observed a drop in homeownership to 82%, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages in zip code 70343 have shown an upward trend, increasing from 10% in 2013 to 18% in 2022. This rise in renting has been accompanied by fluctuations in average rent prices. The average rent rose from $747 in 2013 to a peak of $829 in 2018, before settling at $746 in 2022. The population of the area has also fluctuated, reaching a high of 5,172 in 2014 before declining to 4,664 in 2022. These changes in population may have influenced the demand for rental properties and, consequently, rent prices.
In 2023 and 2024, the housing market in zip code 70343 continued to evolve. The average home price increased to $216,441 in 2023 and further to $230,575 in 2024, representing a significant jump of 9.1% from 2022 to 2024. This price growth occurred despite a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 70343 may continue to rise over the next five years, potentially reaching around $260,000 by 2029 if current trends persist. Average rent prices are also expected to increase, possibly surpassing $800 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 70343 has experienced a gradual shift towards more renters and higher home values over the past decade. The interplay between rising home prices, fluctuating interest rates, and changing demographics has contributed to a slight decline in homeownership rates. As the area continues to evolve, balancing housing affordability with market growth will likely be a key challenge for this Louisiana community.
