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Zip Code 42029: Calvert City's Rising Home Values and Shifting Ownership Trends
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 42029, located in Calvert City, Kentucky, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend of decreasing homeownership alongside fluctuating average home and rent prices, presenting an intriguing dynamic in the local real estate market.
The homeownership rate in zip code 42029 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted an 80% homeownership rate, which peaked at 81% in 2017. However, by 2022, this figure had decreased to 71%, marking a significant 10 percentage point drop over nine years. Concurrently, average home prices have steadily increased. In 2013, the average home price was $73,069, which rose to $121,727 by 2022, representing a substantial 66.6% increase over the same period.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained below 0.5%, coinciding with relatively stable homeownership rates above 75%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline more noticeably. This trend aligns with the general principle that higher interest rates can make homeownership less affordable, potentially contributing to the observed decrease in ownership rates.
The rental market in zip code 42029 has shown interesting patterns as well. The percentage of renters increased from 20% in 2013 to 29% in 2022, mirroring the decline in homeownership. Average rent prices, however, have fluctuated. In 2013, the average rent was $816, which decreased to $758 by 2022, a 7.1% drop. This decrease in average rent, despite the increasing renter population, could be attributed to various factors such as changes in housing stock or local economic conditions.
Looking at more recent data, the average home price in zip code 42029 continued its upward trajectory, reaching $135,692 in 2023 and $145,486 in 2024. This represents a significant 19.5% increase from 2022 to 2024. Simultaneously, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 42029 will continue to rise, potentially reaching around $170,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a possible stabilization or slight increase, with average rents potentially reaching $850-$900 by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 42029 has experienced a notable shift from homeownership to renting over the past decade, with a 10 percentage point decrease in homeownership rates. This trend has occurred alongside a significant increase in average home prices, which have nearly doubled since 2013. The rental market has expanded, though average rent prices have shown more volatility. Recent sharp increases in both home prices and interest rates suggest that affordability may become a growing concern for potential homebuyers in this area, potentially further influencing the balance between owning and renting in the coming years.
