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Zip Code 42171: Rising Home Values and Ownership Rates in Smiths 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 42171, located in Smiths Grove, Kentucky, has experienced notable changes in homeownership rates and property values over the past decade. This area has shown a general trend of increasing homeownership and rising average home prices, while average rent prices have fluctuated.
The homeownership rate in zip code 42171 has seen a significant increase from 80% in 2013 to 84% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $105,648 in 2013 to $207,171 in 2022, representing a 96% increase over nine years. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $154,503 to $207,171, a 34% increase in just two years.
Federal interest rates have played a role in homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the increase in homeownership. As interest rates began to rise in 2022 to 1.68%, we still saw an increase in homeownership, possibly due to buyers rushing to purchase before rates climbed further.
The percentage of renters in zip code 42171 decreased from 20% in 2013 to 16% in 2022, inversely mirroring the rise in homeownership. Interestingly, average rent prices have shown a general downward trend during this period, falling from $815 in 2013 to $731 in 2022, a 10% decrease. This decline in average rent prices occurred despite a population increase from 5,200 in 2013 to 6,072 in 2022, suggesting that other factors, such as increased housing supply or local economic conditions, may have influenced rental markets.
In 2023 and 2024, the average home prices in zip code 42171 continued to rise, reaching $220,938 in 2023 and $232,070 in 2024. This represents a 12% increase from 2022 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and property values.
Looking ahead, our predictive models suggest that average home prices in zip code 42171 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $260,000 to $280,000 by 2029. Average rent prices are expected to stabilize and potentially increase modestly, possibly reaching $750 to $800 per month by 2029, as the rental market adjusts to changes in housing affordability and demand.
In summary, zip code 42171 has experienced a strong trend towards homeownership and appreciating property values over the past decade. The area has shown resilience in its housing market, with continued growth despite rising interest rates. The inverse relationship between homeownership rates and rental percentages, coupled with the interesting trend of decreasing average rent prices amidst population growth, highlights the unique dynamics of this local real estate market.
