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Zip Code 42748: Rising Home Values and Steady Ownership in Hodgenville, 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 42748, located in Hodgenville, Kentucky, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This area, known for its historical significance as the birthplace of Abraham Lincoln, has seen a general trend of increasing homeownership and rising property values. The homeownership rate in zip code 42748 has shown a gradual increase over the years. In 2013, the homeownership rate was 71%, and by 2022, it had reached 72%. This upward trend coincided with a significant rise in average home prices. In 2013, the average home price was $90,872, which steadily increased to $181,941 by 2022, representing a substantial 100% increase over nine years. This correlation suggests that rising property values may have encouraged more residents to invest in homeownership.
Federal interest rates have played a role in homeownership trends in zip code 42748. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 70-71%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased slightly to 72%. This suggests that other local factors, such as job market stability or community development, may have had a stronger influence on homeownership decisions than interest rates alone.
Renter percentages in zip code 42748 have fluctuated slightly but generally remained between 26% and 29% from 2013 to 2022. Interestingly, average rent prices have shown a more pronounced upward trend during this period. In 2013, the average rent was $649, which increased to $799 by 2022, representing a 23% rise. The population growth from 8,846 in 2013 to 9,715 in 2022 may have contributed to the increased demand for rental properties, thus driving up average rent prices.
In 2023 and 2024, the housing market in zip code 42748 continued its upward trajectory. The average home price reached $193,172 in 2023 and further increased to $200,072 in 2024, marking a 10% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These figures suggest a robust local housing market that has maintained momentum even in the face of higher borrowing costs.
Looking ahead, predictive models forecast continued growth in both average home prices and average rent prices for zip code 42748 over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $240,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially reaching $920-$950 per month by 2029. These projections assume relatively stable economic conditions and continued population growth in the area.
In summary, zip code 42748 has demonstrated a resilient and growing housing market over the past decade. The area has seen a steady increase in homeownership rates, substantial growth in average home prices, and a moderate rise in average rent prices. Despite fluctuations in federal interest rates, the local market has shown consistent appreciation, suggesting strong underlying economic factors supporting housing demand in this historic Kentucky community.
