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Zip Code 30005: Rising Home Values and Ownership Rates in Alpharetta, Georgia
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 30005, located in Alpharetta, Georgia, has experienced significant changes in its real estate landscape over the past decade. This suburban area has seen a steady increase in homeownership rates, coupled with substantial growth in both average home prices and average rent prices.
The homeownership rate in zip code 30005 has shown a gradual upward trend, increasing from 69% in 2013 to 72% in 2022. This rise in homeownership coincides with a remarkable surge in average home prices. In 2013, the average home price was $341,425, which steadily climbed to $676,948 by 2022, representing a 98% increase over nine years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in zip code 30005 appears to follow the general economic principle that lower interest rates encourage homeownership. For instance, from 2013 to 2016, when interest rates were consistently below 0.5%, the homeownership rate increased from 69% to 70%. As interest rates began to rise in 2017 and 2018, reaching 1.83% in 2018, the homeownership rate stabilized at 70%. Interestingly, despite the low interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates continued to climb, reaching 72% by 2021 and maintaining that level through 2022.
The renter population in zip code 30005 has remained relatively stable, with the percentage of renters fluctuating between 28% and 30% from 2013 to 2022. However, average rent prices have increased significantly during this period. In 2013, the average rent was $1,498, which rose to $2,105 by 2022, representing a 40.5% increase. This substantial rise in rent prices, coupled with a relatively stable renter population, suggests a high demand for rental properties in the area, possibly driven by factors such as job growth or the desirability of the location.
As of 2024, the average home price in zip code 30005 has reached $759,425, marking a 12.3% increase from 2022. This continued appreciation in home values occurs against the backdrop of a higher federal interest rate of 5.33% in 2024. The 2023 data shows an average home price of $712,991 with a federal interest rate of 5.02%, indicating a consistent upward trajectory in both home prices and interest rates over the past two years.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in zip code 30005 could potentially reach or exceed $900,000 by 2029. Similarly, average rent prices may surpass $2,500 per month within the same timeframe, assuming the area maintains its attractiveness and economic growth.
In summary, zip code 30005 in Alpharetta, Georgia, has demonstrated a robust real estate market characterized by increasing homeownership rates, rapidly appreciating home values, and rising rent prices. The area has shown resilience in the face of fluctuating interest rates, with consistent growth in property values. As the market continues to evolve, both homeowners and renters in this zip code are likely to see further increases in property values and rental costs, reflecting the area's ongoing desirability and economic strength.
