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Zip Code 47712: Rising Home Values and Shifting Ownership Patterns in Evansville, 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
Zip code 47712, located in Evansville, Indiana, has experienced notable shifts in its housing market over the past decade. This area, covering 65.97 square miles, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 47712 has shown a slight decline over the years, dropping from 67% in 2013 to 63% in 2022. This trend coincides with a steady increase in average home prices, which rose from $106,803 in 2013 to $176,741 in 2022, representing a 65.5% increase over nine years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable around 63-64%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate dipped slightly to 62% in 2019. Interestingly, despite the dramatic drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively), homeownership rates only marginally increased to 64%, possibly due to economic uncertainty during the COVID-19 pandemic.
The renter population in zip code 47712 has grown from 32% in 2013 to 37% in 2022, mirroring the decline in homeownership. This shift has been accompanied by a general upward trend in average rent prices, which increased from $905 in 2013 to $972 in 2022, peaking at $1,041 in 2021. The rise in both renter percentage and average rent prices suggests growing demand for rental properties, potentially driven by those priced out of the homebuying market or preferring the flexibility of renting.
Looking at the most recent data, average home prices in zip code 47712 continued to rise, reaching $183,329 in 2023 and $191,267 in 2024. This represents a further 8.2% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying trends.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 47712 to continue their upward trajectory, potentially reaching around $225,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 47712 has experienced a gradual shift towards a higher proportion of renters, coinciding with rising average home prices and fluctuating average rent prices. The interplay between federal interest rates, local economic conditions, and housing market dynamics has shaped these trends. As average home prices continue to climb and interest rates remain elevated, the area may see further changes in its housing landscape, potentially favoring the rental market in the short term.
