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Zip Code 47987: Rising Home Values and 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
Zip code 47987, located in Veedersburg, Indiana, presents an intriguing case study of housing market dynamics in a small Midwestern community. This area has experienced notable shifts in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 47987 has shown a gradual increase from 79% in 2013 to 83% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2012, the average home price was $80,655, which steadily climbed to $155,941 by 2022, representing a remarkable 93.3% increase over this period. The most substantial year-over-year growth occurred between 2020 and 2021, with average home prices jumping from $119,136 to $137,914, a 15.8% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 47987. The period from 2012 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 80%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates surprisingly continued to increase, reaching 83% by 2022. This suggests that other factors, such as local economic conditions or housing supply, may have had a stronger influence on homeownership in this area than national interest rate trends.
Renter percentages in zip code 47987 have inversely mirrored the homeownership trend, decreasing from 21% in 2017 to 17% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $663, which fluctuated over the years, reaching a low of $630 in 2017 before climbing to $762 in 2021, and then decreasing slightly to $702 in 2022. This represents a 5.9% increase in average rent from 2013 to 2022, despite the declining percentage of renters. The population of the zip code has remained relatively stable, with 4,629 residents in 2022, suggesting that changes in rental prices may be influenced by factors such as housing quality improvements or shifts in local economic conditions rather than population pressure.
Moving into more recent data, the average home price in zip code 47987 continued its upward trajectory, reaching $156,649 in 2023 and further increasing to $165,282 in 2024. This represents a 6% increase from 2022 to 2024, indicating a sustained growth in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may potentially impact future homeownership rates and property values in the area.
Looking ahead, predictive models suggest that average home prices in zip code 47987 are likely to continue their upward trend over the next five years, albeit at a potentially slower pace due to higher interest rates. Average home prices could reach approximately $180,000 to $190,000 by 2029. Rent prices are also expected to increase, potentially reaching an average of $750 to $800 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 47987 has demonstrated a clear trend of increasing homeownership and rising property values over the past decade. Despite fluctuations in federal interest rates, the local housing market has shown resilience, with steady growth in average home prices. The rental market, while experiencing some volatility, has generally seen modest increases in average rent. These trends, combined with the area's stable population, suggest a robust and evolving housing market in this Indiana community.
