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Zip Code 40033: Rising Home Values and Shifting Ownership in Lebanon, Kentucky
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 40033, located in Lebanon, Kentucky, has experienced notable shifts in housing dynamics over the past decade. This area, known for its rich history and small-town charm, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends.
The homeownership rate in zip code 40033 has shown a gradual decline from 72% in 2013 to 67% in 2022. This trend coincides with a significant increase in average home prices, which rose from $101,654 in 2013 to $177,591 in 2022, representing a 74.7% increase over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping by 31% in just two years, from $135,548 to $177,591.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which likely contributed to the relatively stable homeownership rates during this time. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018 and 2.16% in 2019, we observe a corresponding slight decrease in homeownership percentages. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in zip code 40033 have increased from 28% in 2013 to 33% in 2022, mirroring the decline in homeownership. Average rent prices have shown volatility, rising from $640 in 2013 to a peak of $839 in 2017, before settling at $690 in 2022. This represents a 7.8% increase in average rent over the decade. The population has remained relatively stable, growing slightly from 12,408 in 2013 to 12,543 in 2022, suggesting that changes in rental demand are more likely driven by economic factors than population growth.
Looking at the most recent data, average home prices in zip code 40033 continued to rise, reaching $185,219 in 2023 and $192,669 in 2024. This represents a 4.3% increase from 2022 to 2023 and a further 4% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 40033 to continue their upward trajectory, potentially reaching around $225,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. Average rent prices are expected to show more moderate growth, potentially reaching approximately $750 by 2029, assuming the current economic conditions and housing market dynamics persist.
In summary, zip code 40033 has experienced a gradual shift towards renting, with homeownership rates declining as average home prices have significantly increased. The interplay between federal interest rates, housing affordability, and rental demand has shaped these trends. The recent sharp rise in interest rates, coupled with continuing increases in home prices, suggests that the housing market in this area may face challenges in maintaining affordability for potential homebuyers in the coming years.
