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Rising Home Values and Stable Ownership in Zip Code 40347: Midway's Resilient Real Estate Market
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 40347, located in Midway, Kentucky, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 40347 has shown resilience, with a slight upward trend in recent years. In 2013, the area had a homeownership rate of 76%, which dipped to 70% in 2015 before gradually recovering to 75% by 2022. This trend corresponds interestingly with the movement in average home prices. The average home price in 2013 was $221,081, which decreased to $181,873 in 2016, aligning with the lowest point of homeownership. As average home prices began to rise again, reaching $278,723 in 2022, the homeownership rate also increased.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period from 2013 to 2015 saw relatively low interest rates (0.11% to 0.13%), which may have contributed to the slight increase in homeownership from 73% in 2014 to 75% in 2021. However, the relationship is not always direct, as other local factors also play a role in homeownership trends.
Renter percentages and average rent prices in zip code 40347 have shown an interesting pattern. The renter-occupied percentage peaked at 30% in 2015, coinciding with an average rent of $929. As the renter percentage decreased to 25% by 2022, the average rent price increased to $992. This inverse relationship suggests that as fewer units were available for rent, the average rent prices increased, possibly due to limited supply and increased demand.
Looking at the most recent data, the average home price in zip code 40347 for 2023 was $289,695, and it further increased to $301,799 in 2024. This upward trend in home prices occurs alongside a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. Despite higher interest rates, the continued rise in home prices suggests strong demand in this area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 40347 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area.
In summary, zip code 40347 has demonstrated a resilient housing market with recovering homeownership rates and steadily increasing average home prices. The inverse relationship between renter percentages and average rent prices highlights the dynamic nature of the local rental market. As we move forward, the area is poised for continued growth in both home values and rental rates, reflecting its attractiveness as a residential location in Kentucky.
