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Zip Code 47649: Rising Home Values and High Ownership Rates in Rural Indiana
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
Francisco, located in zip code 47649 in Indiana, has experienced notable shifts in its housing market over the past decade. This rural community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local demographic changes. The homeownership rate in Francisco has remained relatively stable, with a slight downward trend. In 2013, the percentage of owner-occupied homes stood at 92%, gradually declining to 91% by 2022. This high rate of homeownership is significantly above the national average, indicating a strong preference for property ownership in this area. Concurrently, average home prices have shown a steady upward trajectory. From 2013 to 2022, average home prices increased from $94,778 to $162,504, representing a substantial 71.5% growth over this period.
The relationship between federal interest rates and homeownership rates in Francisco appears to follow the general economic principle that lower interest rates tend to encourage homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), the homeownership rate remained high at around 90%. However, as interest rates began to rise more significantly from 2017 onwards, there was a slight decline in homeownership, dropping from 89% in 2017 to 87% in 2018, before rebounding slightly in subsequent years.
Renter percentages in Francisco have shown a mild increase over time, rising from 8% in 2013 to 9% in 2022. This trend coincides with a notable increase in average rent prices. The average rent rose from $693 in 2013 to $761 in 2022, an increase of about 9.8%. It's worth noting that the population of the zip code has fluctuated, peaking at 1,588 in 2013 and declining to 1,268 by 2022. This population decrease may have influenced the rental market dynamics.
In 2023 and 2024, the housing market in Francisco continued its upward trend. The average home price reached $170,395 in 2023 and further increased to $175,394 in 2024. This represents a 7.9% increase from 2022 to 2024. Notably, these price increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or limited housing supply.
Looking ahead, based on the historical data and current trends, we can forecast continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $200,000 by 2029, assuming a continuation of the current growth rate. Average rent prices might increase to approximately $850-$900 per month in the same timeframe. However, these projections could be influenced by various factors, including economic conditions, local development, and population changes.
In summary, Francisco in zip code 47649 has maintained a high rate of homeownership despite slight declines, while experiencing significant growth in average home prices. The rental market, though smaller, has seen steady increases in both occupancy and prices. The area's resilience in maintaining strong home values, even in the face of rising interest rates, suggests a robust local housing market with potential for continued growth in the coming years.
