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Zip Code 01845: Methuen Town's Rising Home Values and Shifting Ownership Trends
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 01845, located in Methuen Town, Massachusetts, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a gradual shift from owner-occupied housing to more rental properties, while both average home prices and average rent have generally increased.
The homeownership rate in zip code 01845 has shown a slight decline from 74% in 2013 to 69% in 2022. During this same period, average home prices have experienced substantial growth. In 2013, the average home price was $399,425, which increased to $700,873 by 2022, representing a 75.5% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 73-74%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), we see a corresponding decline in homeownership rates from 74% to 71%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 01845 has increased from 25% in 2013 to 31% in 2022. Concurrently, average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,563, which increased to $1,666 by 2022, representing a 6.6% increase. The population of the zip code has also grown from 28,968 in 2013 to 31,186 in 2022, potentially contributing to increased demand for rental properties and subsequent rent increases.
In 2023, the average home price in zip code 01845 reached $729,412, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $767,174, while interest rates have slightly risen to 5.33%. These figures indicate a continuing trend of rising home prices despite higher interest rates, which could further impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 01845 to continue their upward trajectory, potentially reaching around $900,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $2,000 per month within the same timeframe. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 01845 has experienced a gradual shift towards more rental properties, with homeownership rates declining from 74% to 69% between 2013 and 2022. This trend has occurred alongside substantial increases in average home prices, which have nearly doubled during the same period. Average rent prices have also shown an overall increase, though not as dramatic as home prices. The interplay between federal interest rates, population growth, and property values appears to be shaping the housing market in this area, with a trend towards more renters and higher housing costs likely to continue in the near future.
