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Zip Code 41059: Rising Home Values and Strong Ownership Trends in Melbourne, 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
Melbourne, Kentucky, located in zip code 41059, is a small suburban community that has experienced notable shifts in homeownership rates and property values over the past decade. The area has seen a general trend of increasing homeownership and fluctuating average home and rent prices, reflecting broader economic changes and local market dynamics. The homeownership rate in zip code 41059 has shown a steady increase from 2013 to 2022. In 2013, 79% of residents were homeowners, and this figure rose to 85% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $131,023, which grew substantially to $219,739 by 2022, representing a 67.7% increase over nine years. This parallel growth suggests a strong correlation between rising property values and increased homeownership in the area.
The relationship between federal interest rates and homeownership rates in zip code 41059 appears to follow the expected trend. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates increased from 79% to 83%. This aligns with the general principle that lower interest rates make mortgages more affordable, encouraging homeownership. However, it's worth noting that even as interest rates began to rise more sharply in 2022 to 1.68%, homeownership in the area continued to increase to 85%, indicating other local factors may also be influencing this trend.
Renter percentages in zip code 41059 have conversely decreased from 21% in 2013 to 15% in 2022. Interestingly, average rent prices have shown significant volatility during this period. Starting at $761 in 2013, average rent peaked at $1,009 in 2017 before declining to $744 in 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, suggests a complex rental market influenced by factors such as housing supply, local economic conditions, and possibly a shift towards homeownership as property values increased.
In 2023 and 2024, the average home prices in zip code 41059 showed a slight increase followed by a decrease. The average home price rose to $221,595 in 2023 but then declined to $214,496 in 2024. This recent trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Looking ahead, predictive models suggest that average home prices in zip code 41059 may continue to experience moderate growth over the next five years, albeit at a slower pace than seen in the previous decade. This projection is based on the historical trend of increasing property values in the area, tempered by the current higher interest rate environment. Average rent prices are expected to stabilize and potentially see modest increases, influenced by the area's growing population and the balance between rental demand and the strong homeownership trend.
In summary, zip code 41059 has demonstrated a robust trend towards homeownership, with property values appreciating significantly over the past decade. The rental market has shown volatility, with decreasing renter percentages and fluctuating rent prices. Recent data indicates a potential cooling in the housing market, likely influenced by rising interest rates. These trends collectively paint a picture of a dynamic real estate market in Melbourne, Kentucky, with homeownership becoming increasingly prevalent among residents.
