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Zip Code 40356: Rising Home Values and Ownership Rates in Nicholasville, 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 40356, located in Nicholasville, Kentucky, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual increase in population density, rising from 282.86 people per square mile in 2010 to 329.11 in 2022, indicating steady growth and development.
The homeownership rate in zip code 40356 has shown an upward trend, increasing from 65% in 2013 to 69% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $143,168, and by 2022, it had risen to $259,490, representing an impressive 81.2% increase over nine years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 40356. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at around 62-63%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates paradoxically increased to 69%. This unusual trend might be attributed to other local factors driving home purchases, such as job growth or improved local amenities.
The rental market in zip code 40356 has shown interesting trends as well. The percentage of renters decreased from 37% in 2017 to 31% in 2022. Despite this decline in the renter population, average rent prices have fluctuated. In 2013, the average rent was $851, rising to $864 in 2018, but then decreasing to $830 in 2022. This suggests that the rental market has remained relatively stable despite the decrease in renter occupancy, possibly due to increased housing supply or other local economic factors.
In 2023 and 2024, the housing market in zip code 40356 continued its upward trajectory. The average home price reached $273,757 in 2023 and further increased to $288,820 in 2024, representing a 5.5% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests strong demand and a robust local housing market.
Looking ahead, predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to maintain their upward trend, potentially reaching around $340,000 by 2029. Average rent prices, which have been more stable, are expected to see moderate increases, possibly reaching $950 per month in the same timeframe.
In summary, zip code 40356 has demonstrated a strong housing market with increasing homeownership rates and rising average home prices. The area has shown resilience in the face of fluctuating interest rates, maintaining growth in both population and property values. The rental market, while experiencing a decrease in the percentage of renters, has remained relatively stable in terms of average rent prices. These trends point to a dynamic and growing community with a robust real estate market poised for continued expansion in the coming years.
