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Zip Code 41503: Surging Home Values and Ownership Rates in South Williamson, 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 41503, located in South Williamson, Kentucky, has experienced significant demographic shifts and housing market changes over the past decade. This area has seen a notable decline in population, coupled with fluctuations in homeownership rates and housing prices.
The homeownership rate in zip code 41503 has shown an overall upward trend, increasing from 57% in 2019 to 72% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2016, the average home price was $67,362, which steadily climbed to $103,059 by 2022, representing a 53% increase over six years. This trend suggests a growing interest in homeownership despite rising prices, possibly due to the area's affordability compared to national averages.
Federal interest rates appear to have influenced homeownership rates in the area. From 2016 to 2020, when interest rates were relatively low (ranging from 0.4% to 2.16%), homeownership rates fluctuated but remained generally high, between 62% and 75%. The sharp drop in interest rates to 0.08% in 2021 coincided with a spike in homeownership to 81%, the highest in the observed period. This aligns with the well-established trend that lower interest rates often encourage homeownership due to more affordable financing options.
Renter percentages in zip code 41503 have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. The renter population peaked at 43% in 2019 when the average rent was $635. Interestingly, despite the overall decline in renter percentages, average rent prices have shown a gradual increase from $620 in 2013 to $639 in 2022. This upward trend in rent prices, despite a decreasing renter population, could indicate a tightening rental market or improved quality of available rental properties.
In 2023 and 2024, the housing market in zip code 41503 showed signs of stabilization. The average home price slightly decreased to $98,663 in 2023 but rebounded to $100,111 in 2024. This occurred as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer demand.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 41503 may continue to rise moderately over the next five years, potentially reaching around $110,000 by 2029. However, this growth rate may slow compared to the rapid increases seen in previous years due to higher interest rates. Average rent prices are also likely to continue their gradual upward trajectory, potentially reaching approximately $670 by 2029, assuming the current trends persist.
In summary, zip code 41503 has experienced a significant increase in homeownership rates and average home prices over the past decade, despite a declining population. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. While the area has seen substantial growth in property values, the recent stabilization in prices and the impact of rising interest rates will be crucial factors shaping the future of this housing market.
