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Rising Home Values and Stable Ownership in Zip Code 42724: Cecilia's Resilient Housing 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 42724, located in Cecilia, Kentucky, has shown interesting demographic and housing trends over the past decade. This area has experienced fluctuations in homeownership rates, with a general trend towards increased owner-occupied housing. Simultaneously, average home prices have steadily risen, while average rent prices have shown more variability.
The percentage of owner-occupied housing in zip code 42724 has generally increased from 2013 to 2022. In 2013, the homeownership rate was 87%, which rose to 90% in 2020 before slightly decreasing to 86% in 2022. During this same period, average home prices in the area saw consistent growth. In 2013, the average home price was $98,092, which increased to $183,544 by 2022, representing an impressive 87% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained stable at around 84-87%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased slightly to 89-90% in 2018-2020 before dipping to 86% in 2022. This suggests that other local factors may have a stronger influence on homeownership in this area than national interest rates alone.
Renter percentages in zip code 42724 have fluctuated inversely to homeownership rates, ranging from 10% to 16% between 2013 and 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $640, which decreased to $575 in 2014 and 2015. Rent prices then rose to $660 in 2020 before declining slightly to $656 in 2022. These fluctuations in rent prices don't show a clear correlation with the percentage of renters, suggesting that local economic factors and housing supply may play a significant role in determining rent prices in this area.
Looking at the most recent data, average home prices in zip code 42724 continued to rise in 2023 and 2024, reaching $189,353 and $190,891 respectively. This represents a modest increase of 3.2% from 2022 to 2023 and a further 0.8% from 2023 to 2024. Notably, federal interest rates have also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, albeit at a slower pace than in previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 42724 will continue to rise, albeit at a more moderate pace. Based on the historical data and current economic conditions, we project average home prices could reach approximately $210,000 to $220,000 by 2029. For rent prices, the forecast suggests a potential increase to around $700-$750 per month over the next five years, assuming continued economic growth and demand for rental properties in the area.
In summary, zip code 42724 has demonstrated a trend towards increased homeownership and rising property values over the past decade. Despite recent increases in interest rates, home prices have continued to appreciate, reflecting the area's desirability and economic stability. The rental market has shown more variability, but with a general upward trend in recent years. These patterns suggest a robust and dynamic housing market in Cecilia, Kentucky, with potential for continued growth in both the ownership and rental sectors.
