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Zip Code 42366: Rising Home Values and Strong Ownership Trends in Philpot, 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 42366, located in Philpot, Kentucky, showcases a unique housing market with consistently high homeownership rates and fluctuating average home and rent prices. This area has maintained a strong preference for owner-occupied housing, with ownership rates consistently above 89% throughout the observed period.
The homeownership rate in zip code 42366 has shown remarkable stability, with a slight upward trend in recent years. In 2013, the ownership rate stood at 93%, and after a brief dip to 89% in 2017 and 2019, it rebounded to 94% in 2022. This trend aligns with the changes in average home prices, which have seen significant growth. The average home price rose from $119,783 in 2013 to $214,738 in 2022, representing a substantial 79.3% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 1.83%. These low rates likely contributed to the sustained high homeownership rates in zip code 42366. As interest rates began to rise in 2022 to 1.68%, we saw a slight increase in homeownership to 94%, possibly due to residents rushing to secure mortgages before rates climbed further.
The rental market in zip code 42366 has remained relatively small but has shown some fluctuations. The percentage of renters increased from 7% in 2013 to a peak of 11% in 2019, before declining to 6% in 2022. Average rent prices have been volatile, rising from $814 in 2013 to a high of $949 in 2018, then dropping to $740 in 2022. These fluctuations may be influenced by the limited rental inventory in an area dominated by owner-occupied housing.
In 2023 and 2024, the housing market in zip code 42366 continued its upward trajectory. The average home price reached $225,433 in 2023 and further increased to $231,312 in 2024. This represents a 7.8% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the previous years.
Looking ahead, we can expect the average home prices in zip code 42366 to continue their upward trend, albeit at a potentially slower pace due to higher interest rates. Based on historical data and current trends, we project average home prices could reach approximately $250,000 to $260,000 by 2029. For rent prices, given their historical volatility, we anticipate they may stabilize or show modest growth, potentially ranging between $800 to $950 by 2029.
In summary, zip code 42366 in Philpot, Kentucky, demonstrates a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The area has shown resilience to economic changes, maintaining strong ownership preferences even as home prices have risen substantially. The rental market, while small, has shown some variability in both occupancy rates and prices. As we move forward, the interplay between rising home prices, higher interest rates, and the area's strong preference for homeownership will likely continue to shape the local housing market dynamics.
