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Zip Code 41701: Rising Home Values and Stable Ownership in Hazard, 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 41701, located in Hazard, Kentucky, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its rich Appalachian heritage and coal mining history, has seen a general trend of increasing homeownership and fluctuating housing prices.
The ownership percentage in zip code 41701 has shown a gradual increase from 68% in 2013 to 68% in 2022, with some fluctuations in between. During this period, average home prices have also experienced significant growth. In 2013, the average home price was $61,043, which steadily increased to $102,898 by 2022, representing a substantial 68.6% increase over nine years. This trend suggests a positive correlation between homeownership rates and average home prices in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 41701. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 68-69%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates actually increased from 69% to 73%, possibly due to buyers rushing to purchase homes before rates climbed further. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight decrease in homeownership to 71%, which could be attributed to economic uncertainties during the pandemic.
Renter percentages in zip code 41701 have generally decreased from 32% in 2013 to 32% in 2022, inversely mirroring the homeownership trend. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $595, which decreased to $484 in 2016 before rising again to $680 in 2022. This represents a 14.3% increase in average rent from 2013 to 2022, despite fluctuations. The population in the zip code has remained relatively stable, decreasing slightly from 14,949 in 2013 to 14,724 in 2022, which may have contributed to the overall stability in the rental market.
In 2023, the average home price in zip code 41701 slightly decreased to $100,565, while federal interest rates rose sharply to 5.02%. Moving into 2024, we see a slight rebound in average home prices to $102,641, with interest rates further increasing to 5.33%. This recent data suggests a resilient housing market in the face of rising interest rates, possibly indicating strong local demand or limited housing supply.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 41701 may continue to rise moderately over the next five years, potentially reaching around $115,000 to $120,000 by 2029. Average rent prices, which have shown more volatility, might stabilize and increase at a slower rate, potentially reaching $750 to $800 per month in the same timeframe.
In summary, zip code 41701 has demonstrated a trend of increasing homeownership rates and rising average home prices over the past decade, despite fluctuations in the broader economic environment. The area has shown resilience in its housing market, with recent data indicating continued growth even in the face of rising interest rates. The rental market, while more volatile, has also seen an overall increase in prices. These trends suggest a generally robust and evolving housing market in this Kentucky zip code.
