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Zip Code 47959: Resilient Homeownership Amidst Rising Home Values in Monon, 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
The zip code 47959, encompassing Monon in Indiana, presents an intriguing case study of housing market dynamics in a small Midwestern community. Over the past decade, this area has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
Homeownership rates in zip code 47959 have shown a slight overall increase from 2013 to 2022, despite some year-to-year variations. In 2013, the homeownership rate stood at 72%, rising to a peak of 78% in 2016 before settling at 73% in 2022. This trend has coincided with a significant increase in average home prices. From 2013 to 2022, average home prices in the area rose from $55,832 to $143,234, representing a substantial 156% increase over nine years. This price appreciation suggests a growing demand for housing in the area, potentially driven by factors such as local economic development or improved community amenities.
The relationship between federal interest rates and homeownership rates in zip code 47959 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, the period from 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), saw an increase in homeownership from 72% to 78%. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates showed some fluctuation, ultimately returning to 73% by 2022 when the federal interest rate reached 1.68%.
Renter percentages in the zip code have inversely mirrored homeownership trends, decreasing from 28% in 2013 to 27% in 2022, with a low of 22% in 2016. Interestingly, average rent prices have shown moderate volatility over this period. In 2013, the average rent was $703, dropping to a low of $673 in 2018 before rising to $729 in 2022. This represents a modest 3.7% increase in average rent over nine years, significantly lower than the growth in home prices. The relatively stable rent prices, despite fluctuations in the renter population, suggest a balanced rental market in the area.
In 2023 and 2024, the housing market in zip code 47959 continued its upward trajectory. Average home prices reached $149,311 in 2023 and further increased to $158,065 in 2024, representing a 10.4% 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 higher interest rates typically make borrowing more expensive, yet the continued rise in home prices suggests strong underlying demand in the local housing market.
Looking ahead, predictive models forecast a continuation of the upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 20-25% from their 2024 levels by 2029, potentially reaching around $190,000 to $200,000. Average rent prices are expected to grow more moderately, with a projected increase of 10-15% over the same period, potentially reaching $800 to $850 per month by 2029.
In summary, zip code 47959 has demonstrated a resilient and growing housing market over the past decade. The area has seen substantial appreciation in home values, relatively stable homeownership rates, and moderate growth in rent prices. Despite rising interest rates, the housing market has continued to strengthen, suggesting strong local economic factors driving demand. As the community moves forward, it appears poised for continued growth in both the homeownership and rental sectors, presenting opportunities and challenges for residents and policymakers alike.
