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Zip Code 41085: Rising Home Values and Ownership Trends in Silver Grove, 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 41085, located in Silver Grove, Kentucky, has experienced notable fluctuations in population and housing dynamics over the past decade. This small community, covering just 1.32 square miles, has seen interesting shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The ownership percentage in zip code 41085 has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 57%, which increased to a peak of 69% in 2018 before slightly declining to 63% in 2022. This overall increase in homeownership coincided with a significant rise in average home prices. From 2014 to 2022, average home prices in the area rose from $86,861 to $156,602, representing an impressive 80% increase over eight years.
The relationship between federal interest rates and homeownership rates in zip code 41085 appears to follow the general economic principle that lower interest rates tend to encourage homeownership. For instance, as interest rates remained low between 2014 and 2016 (ranging from 0.09% to 0.40%), homeownership rates increased from 54% to 59%. However, even as interest rates began to rise more significantly from 2017 onwards, homeownership rates in this zip code continued to climb, reaching 68% in 2019 when the federal interest rate was 2.16%. This suggests that local factors may have played a significant role in driving homeownership trends in this area, potentially overriding the effects of national interest rate changes.
Renter percentages in zip code 41085 have generally decreased as homeownership rates increased, dropping from 43% in 2013 to 37% in 2022. Interestingly, average rent prices have shown considerable volatility. From 2013 to 2017, average rent increased steadily from $819 to $875. However, there was a sharp decline in 2018 to $645, followed by a recovery to $867 in 2020, and then another significant drop to $622 in 2022. This volatility in rent prices, particularly the sharp declines, may be related to changes in local housing supply or economic conditions specific to Silver Grove.
In 2023 and 2024, average home prices in zip code 41085 continued their upward trajectory, reaching $167,106 in 2023 before experiencing a slight decline to $155,343 in 2024. This recent decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the local housing market.
Looking ahead, based on historical trends and current economic conditions, we can project potential 5-year trends for average home and rent prices in zip code 41085. Average home prices may experience moderate growth, potentially reaching around $180,000 to $190,000 by 2029, assuming a continuation of long-term appreciation trends despite recent market fluctuations. Average rent prices, given their historical volatility, are more challenging to predict. However, if local economic conditions stabilize, we might see average rents gradually increase to the $700-$750 range over the next five years.
In summary, zip code 41085 has demonstrated a strong trend towards increased homeownership over the past decade, accompanied by substantial growth in average home prices. The area has shown resilience in maintaining high homeownership rates even in the face of rising interest rates. The rental market, however, has experienced more volatility, particularly in terms of average rent prices. As we move forward, the interplay between interest rates, local economic factors, and housing supply will likely continue to shape the housing market dynamics in this Kentucky community.
