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Rising Home Values and Shifting Ownership in Zip Code 75503: Texarkana's Changing Housing Landscape
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 75503, located in Texarkana, Texas, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of decreasing homeownership and rising housing costs, reflecting broader economic shifts in the region.
The homeownership rate in zip code 75503 has shown a notable decline from 2013 to 2022. In 2013, 69% of residents owned their homes, but by 2022, this figure had dropped to 62%. This 7% decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $149,265, which rose steadily to reach $243,640 by 2022, representing a 63% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained low (below 0.5%), corresponding with relatively stable homeownership rates around 65-68%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates showed a slight decline. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not lead to an immediate increase in homeownership, possibly due to economic uncertainties during the pandemic.
As homeownership decreased, the percentage of renters in zip code 75503 naturally increased. The renter population grew from 31% in 2013 to 38% in 2022. This rise in renters was accompanied by an increase in average rent prices, from $1,116 in 2013 to $1,195 in 2022, a 7% increase. However, the growth in rent prices was not as steep as the increase in home prices, potentially making renting a more attractive option for some residents. The population in this zip code also grew during this period, from 24,048 in 2013 to 26,930 in 2022, which likely contributed to the demand for rental properties.
In 2023 and 2024, the average home prices in zip code 75503 continued to rise, reaching $247,192 in 2023 and $250,305 in 2024. This represents a modest increase of 1.3% from 2023 to 2024, indicating a potential slowdown in the rate of price growth compared to previous years. Notably, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current economic conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 75503. Average home prices are likely to continue rising, but at a more moderate pace, potentially reaching around $270,000 to $280,000 by 2029. Average rent prices may also continue to increase, possibly reaching $1,300 to $1,350 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 75503 has experienced a shift towards renting, with homeownership rates declining as average home prices have significantly increased. The rise in both home prices and rent costs, coupled with population growth, suggests a competitive housing market in this area of Texarkana. The recent sharp increase in interest rates may further impact housing affordability and homeownership trends in the coming years.
