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Zip Code 48014: Rising Home Values and Ownership Trends in Rural Capac, Michigan
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 48014, located in Capac, Michigan, has experienced notable shifts in housing dynamics over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 48014 has shown a general upward trend, increasing from 78% in 2013 to 80% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $88,522, which steadily climbed to reach $228,410 by 2022, representing a substantial 158% increase over this period. The most dramatic year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $182,774 to $213,008, a 16.5% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 48014. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained stable at around 78-79%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, there was a slight dip in homeownership to 77% in 2018. However, the sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 coincided with a significant boost in homeownership, peaking at 83% in 2021.
The rental market in zip code 48014 has shown inverse trends to homeownership. The percentage of renters decreased from 22% in 2013 to 20% in 2022. Interestingly, average rent prices have generally declined over this period, falling from $974 in 2013 to $865 in 2022, a 11.2% decrease. This trend is particularly notable given the area's population growth from 4,235 in 2013 to 4,299 in 2022, suggesting that increased housing supply or other local factors may have influenced rental prices.
As of 2024, the average home price in zip code 48014 has risen to $241,197, continuing the upward trend observed in previous years. This represents a 3.9% increase from the 2023 average of $232,024. Notably, the federal interest rate has also increased significantly, reaching 5.33% in 2024, up from 5.02% in 2023. This higher interest rate environment may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 48014 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $275,000 by 2029. Rent prices, which have been on a declining trend, may stabilize or see modest increases, potentially reaching around $900 per month by 2029 as the market adjusts to changing demand and supply dynamics.
In summary, zip code 48014 has experienced a significant increase in homeownership rates and average home prices over the past decade, particularly during periods of low interest rates. The rental market has seen a decrease in both the percentage of renters and average rent prices. As interest rates have risen sharply in recent years, it will be crucial to monitor how these trends evolve, potentially affecting housing affordability and homeownership rates in the coming years.
