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Zip Code 47120: Rising Home Values and Stable Ownership in Rural Indiana
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 47120, located in Fredericksburg, Indiana, has experienced notable fluctuations in population and housing dynamics over the past decade. This area has seen a general trend of increasing homeownership rates alongside rising average home prices, with some interesting variations in recent years.
The homeownership rate in zip code 47120 has remained relatively high, fluctuating between 86% and 91% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $107,292, which steadily increased to $209,165 by 2022, representing a significant 95% increase over nine years. Notably, the highest homeownership rate of 91% was recorded in 2013, coinciding with the lowest average home price in the analyzed period.
Federal interest rates have played a role in homeownership trends in this area. For instance, in 2013, when interest rates were at a low 0.11%, the homeownership rate was at its peak of 91%. As interest rates gradually increased to 1.83% by 2018, there was a slight decrease in homeownership to 87%. However, the relationship is not always straightforward, as evidenced by the 90% homeownership rate in 2022 despite a higher interest rate of 1.68%.
Renter percentages in zip code 47120 have fluctuated inversely to homeownership rates, ranging from 9% to 14% between 2013 and 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $594, which peaked at $883 in 2015 before stabilizing around $700 in recent years. Interestingly, the highest renter percentage of 14% in 2015 coincided with the highest average rent price, suggesting a complex relationship between rental demand and pricing in this area.
In 2023, the average home price in zip code 47120 reached $216,983, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $227,074, with interest rates slightly higher at 5.33%. This demonstrates the resilience of the local housing market in the face of rising interest rates.
Looking ahead, predictive models suggest that average home prices in zip code 47120 may continue to rise over the next five years, potentially reaching around $250,000 by 2029. However, this growth rate might slow compared to the rapid increases seen in recent years. Average rent prices are expected to remain relatively stable, possibly fluctuating between $700 and $750, reflecting the area's consistent demand for rental properties.
In summary, zip code 47120 has demonstrated a strong preference for homeownership, with rates consistently above 85%. The area has experienced substantial growth in average home prices, nearly doubling over the past decade. Despite recent increases in interest rates, the housing market has shown resilience, with both prices and homeownership rates remaining high. The rental market, while smaller, has maintained stability in recent years, suggesting a balanced housing ecosystem in this Indiana community.
