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Zip Code 40372: Rising Home Values and Ownership in Salvisa, 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 40372, located in Salvisa, Kentucky, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural area has seen a significant increase in homeownership, coupled with fluctuating average home and rent prices.
The ownership percentage in zip code 40372 has shown a remarkable upward trend, rising from 77% in 2015 to 91% in 2022. This increase in homeownership coincided with a substantial rise in average home prices, which grew from $137,666 in 2015 to $235,608 in 2022, representing a 71% increase over seven years. The relationship between ownership rates and home prices appears to be positive, suggesting that despite rising prices, more residents were able to become homeowners.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2015 to 2020 saw relatively low interest rates, ranging from 0.13% to 2.16%, which likely contributed to the increase in homeownership from 77% to 94% during this time. The historically low rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with the peak homeownership rate of 94% in 2020.
Conversely, the percentage of renters in zip code 40372 has decreased significantly, dropping from 23% in 2015 to just 9% in 2022. Despite this decline, average rent prices have shown volatility. They peaked at $856 in 2016 before dropping sharply to $464 in 2017. Since then, average rent has rebounded, reaching $629 in 2022. The fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market influenced by factors beyond simple supply and demand.
In 2023 and 2024, the housing market in zip code 40372 continued to evolve. Average home prices reached $244,175 in 2023 and further increased to $254,602 in 2024, marking a 3.7% and 8.1% year-over-year growth respectively. This occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 40372 will continue to rise over the next five years, albeit at a more moderate pace. We anticipate average home prices could reach approximately $280,000 by 2029, representing a 10% increase from 2024 levels. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching around $700 per month by 2029, reflecting a gradual 11% increase over five years.
In summary, zip code 40372 has experienced a significant shift towards homeownership, with average home prices rising substantially. The rental market has shrunk but remains volatile. Despite rising interest rates, home prices continue to climb, albeit at a slower pace. These trends suggest a strong local housing market with an increasing preference for homeownership among residents.
