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Rising Home Values and Strong Ownership in Zip Code 75071: McKinney'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 75071, located in McKinney, Texas, has experienced significant growth and dynamic changes in its real estate market over the past decade. This area has seen a steady increase in population, coupled with fluctuations in homeownership rates and substantial rises in both average home prices and average rent prices.
The homeownership rate in zip code 75071 has shown remarkable stability, with only minor fluctuations over the years. In 2013, the homeownership rate stood at 77%, and by 2022, it remained nearly unchanged at 77%. Despite this consistency, average home prices in the area have experienced substantial growth. In 2013, the average home price was $224,551, which steadily increased to $531,504 by 2022, representing a striking 136.7% increase over this period.
When examining the relationship between federal interest rates and homeownership rates, we observe an interesting trend. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), the homeownership rate in zip code 75071 remained relatively stable. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in determining homeownership rates in this area than interest rates alone.
The rental market in zip code 75071 has also experienced notable changes. The percentage of renters increased slightly from 22% in 2013 to 23% in 2022. During this same period, average rent prices rose from $1,604 in 2013 to $1,890 in 2022, an increase of 17.8%. This growth in rent prices, while significant, was less dramatic than the increase in average home prices. The relatively modest increase in the renter population, coupled with the substantial population growth from 39,351 in 2013 to 68,499 in 2022, suggests that new housing developments may have helped to meet the growing demand and moderate rent increases.
Looking at the most recent data, we see that average home prices in zip code 75071 experienced a slight dip from $531,504 in 2022 to $526,923 in 2023, followed by a small rebound to $532,656 in 2024. This recent stabilization occurs against the backdrop of significantly higher interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the moderation in home price growth.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 75071 will continue to grow, but at a more moderate pace compared to the rapid increases seen in the early 2020s. The average home price is projected to reach approximately $600,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially reaching around $2,200 per month by 2029. These projections assume continued population growth and economic stability in the area.
In summary, zip code 75071 has demonstrated remarkable resilience in its homeownership rates despite significant increases in average home prices. The area has experienced substantial population growth, which has likely contributed to the rising home values and rent prices. The recent stabilization in home prices, coupled with higher interest rates, suggests a potential shift towards a more balanced market. As McKinney continues to grow, the interplay between housing supply, population growth, and economic factors will be crucial in shaping the future of this dynamic real estate market.
