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Rising Home Values and Stable Ownership in Zip Code 55976: Stewartville's Decade of Growth
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
Stewartville, Minnesota, zip code 55976, is a growing community that has experienced notable changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in this area, revealing interesting patterns and potential future developments. The homeownership rate in Stewartville has remained relatively stable, with slight fluctuations over the years. In 2013, 83% of residents were homeowners, which decreased to 79% in 2015 and 2016. However, by 2022, the rate had returned to 81%. This stability in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $167,098, which rose consistently year over year, reaching $304,539 in 2022. This represents an impressive 82% increase over a nine-year period, indicating a strong and growing housing market in the area. Federal interest rates have played a role in shaping homeownership trends in Stewartville. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates experienced a slight decline from 83% to 79%. This counter-intuitive trend might be attributed to other local economic factors. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 80-81%, suggesting that residents were motivated to secure mortgages before rates increased further.
Renter percentages in Stewartville have mirrored the homeownership trends, naturally. The proportion of renters increased from 17% in 2013 to 21% in 2015 and 2016, before settling back to 19% in 2022. Interestingly, average rent prices have not shown a consistent upward trend like home prices. In 2013, the average rent was $953, which fluctuated over the years, peaking at $944 in 2018 before decreasing to $903 in 2022. This represents a 5.2% decrease in average rent from 2013 to 2022, despite the population growth from 8,063 to 8,868 during the same period.
Looking at the most recent data, the average home price in Stewartville continued to rise, reaching $309,103 in 2023 and $314,287 in 2024. This represents a modest increase of 1.68% from 2022 to 2023 and 1.67% from 2023 to 2024, indicating a slowdown in the rate of price appreciation compared to previous years. Notably, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may be contributing to this deceleration in home price growth.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in Stewartville will continue to rise, albeit at a more moderate pace. Given the recent slowdown and higher interest rates, we might expect annual increases of 2-3% over the next five years, potentially reaching around $355,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and begin to increase slightly, potentially reaching $950-$1,000 by 2029, driven by population growth and potential shifts in housing preferences.
In summary, Stewartville's housing market has demonstrated resilience and growth, with stable homeownership rates and consistently rising average home prices. The recent moderation in price appreciation, coupled with higher interest rates, suggests a potential shift towards a more balanced market. Renters have experienced relatively stable average rents, despite population growth. As Stewartville continues to evolve, these trends will likely shape the community's housing landscape in the coming years.
