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Zip Code 47943: Rising Home Values and Strong Ownership in Fair Oaks, 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 47943, located in Fair Oaks, Indiana, has experienced notable shifts in its housing landscape over the past decade. This rural area has seen fluctuations in homeownership rates and significant changes in average home and rent prices. The community has maintained a predominantly owner-occupied housing market, with homeownership rates consistently above 75% throughout the observed period.
Homeownership rates in zip code 47943 have shown resilience, with a slight upward trend in recent years. In 2013, the homeownership rate was 84%, which dipped to 77% in 2016 before rebounding to 86% by 2022. This trend coincides with substantial growth in average home prices. The average home price in 2010 was $128,128, which more than doubled to $285,845 by 2022, representing a 123% increase over 12 years. This appreciation in home values may have contributed to the sustained high levels of homeownership, as residents likely viewed their homes as valuable long-term investments.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained historically low from 2010 to 2021, ranging from 0.08% to 2.16%, homeownership rates remained relatively stable, hovering around 80%. The slight dip in homeownership to 77% in 2016 occurred when interest rates began to rise from their near-zero levels, reaching 0.4% that year. However, despite further increases in interest rates, homeownership rebounded and strengthened to 86% by 2022, suggesting that other local factors may have played a more significant role in homeownership decisions in this area.
Renter percentages in zip code 47943 have inversely mirrored homeownership rates, ranging from a high of 23% in 2016 to a low of 14% in 2022. Interestingly, average rent prices have shown volatility over this period. In 2013, the average rent was $1,108, which decreased to $806 by 2021, a 27% drop. However, rent prices increased again to $940 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the percentage of renters, suggesting that local economic factors or housing supply might have a more direct impact on the rental market in this area.
Looking at the most recent data, the average home price in zip code 47943 continued its upward trajectory, reaching $298,182 in 2023 and further increasing to $314,415 in 2024. This represents a 10% increase from 2022 to 2024, indicating a robust housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, the housing market in this zip code appears to remain strong.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 47943 will continue to rise, albeit potentially at a slower rate due to the higher interest rate environment. Based on the historical data, we project that average home prices could reach approximately $350,000 to $375,000 by 2029. For rent prices, the forecast is less certain due to past volatility, but a moderate increase to around $1,000 to $1,100 per month is possible, assuming economic stability and continued population growth in the area.
In summary, zip code 47943 has demonstrated a robust and growing housing market characterized by increasing home values and stable, high homeownership rates. The area has shown resilience in maintaining strong homeownership despite fluctuations in interest rates and economic conditions. The rental market, while smaller, has shown more volatility in pricing. Looking forward, the housing market in this zip code is expected to continue its growth trajectory, with homeownership remaining a dominant feature of the local real estate landscape.
