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Zip Code 42461: Uniontown, Kentucky's Shifting Home Values and 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 42461, located in Uniontown, Kentucky, presents an intriguing case study of homeownership and housing market dynamics in a small urban area. This zip code has experienced significant fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 42461 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 78%, which decreased to 67% by 2022. This downward trend coincides with a notable increase in average home prices. The average home price in the area rose from $62,694 in 2013 to $101,405 in 2022, representing a substantial 61.7% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 42461. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 73-75%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observe a slight increase in homeownership to 78% in 2019, possibly due to residents rushing to secure mortgages before rates climbed further. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a brief uptick in homeownership to 77% in 2020, before declining again to 67% in 2022 as rates increased to 1.68%.
Renter percentages in zip code 42461 have generally increased from 22% in 2013 to 33% in 2022, mirroring the decline in homeownership. Average rent prices have shown volatility during this period. From 2013 to 2020, average rent prices fluctuated between $659 and $702, with no clear upward trend. However, there was a significant spike in 2021, with average rent reaching $978, before dropping sharply to $647 in 2022. This volatility in rent prices, coupled with the increasing renter population, suggests a complex rental market influenced by factors such as local economic conditions and housing supply.
In 2023 and 2024, the housing market in zip code 42461 showed signs of stabilization after the significant growth seen in previous years. The average home price in 2023 was $95,035, a slight decrease from the 2022 peak of $101,405. In 2024, there was a marginal increase to $96,230. This stabilization occurred despite the sharp rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially dampening home buying activity.
Looking ahead, based on historical trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices in zip code 42461 may continue to experience moderate growth, albeit at a slower pace than seen in the 2020-2022 period. We might expect average home prices to reach around $105,000-$110,000 by 2029. Rent prices, which have shown significant volatility, may stabilize and gradually increase, potentially reaching an average of $700-$750 per month by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, zip code 42461 has experienced a notable shift in its housing market dynamics over the past decade. The decline in homeownership rates, coupled with rising home prices and fluctuating rent costs, reflects a changing landscape for residents. The interplay between federal interest rates, local economic conditions, and housing affordability will continue to shape the future of homeownership and rental trends in this Kentucky community.
