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Zip Code 48062: Rising Home Values and Ownership Trends in Richmond, 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 48062, located in Richmond, Michigan, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, covering 39.68 square miles, has shown interesting trends in both ownership percentages and average home and rent prices, reflecting broader economic patterns and local market dynamics.
The homeownership rate in zip code 48062 has shown a notable increase from 2013 to 2022. In 2013, 79% of residents owned their homes, and this figure rose to 82% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $145,304, and it rose steadily to reach $279,089 in 2022, representing a remarkable 92% increase over this period.
The trend in homeownership rates appears to have been influenced by federal interest rates. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 77-79%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased from 79% to 82%. This suggests that local factors in zip code 48062 may have outweighed the typical inverse relationship between interest rates and homeownership rates.
Conversely, the percentage of renters in zip code 48062 decreased from 21% in 2013 to 18% in 2022. Despite this decrease in the renter population, average rent prices showed overall growth, albeit with some fluctuations. In 2013, the average rent was $744, which increased to $933 by 2015. After some variations, it settled at $809 in 2022, representing a total increase of about 8.7% from 2013 to 2022. The fluctuations in rent prices, particularly the peak in 2015 and subsequent decline, may be attributed to changes in local economic conditions or housing supply.
Looking at the most recent data, the average home price in zip code 48062 continued to rise in 2023 and 2024, reaching $281,074 and $285,831 respectively. This represents a modest but steady increase of about 2.4% from 2022 to 2024. Interestingly, this growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in zip code 48062 to continue their upward trajectory, potentially reaching around $320,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of around $900 per month by 2029, assuming the local economic conditions remain stable.
In summary, zip code 48062 has demonstrated a strong trend towards homeownership, with a significant increase in average home prices over the past decade. Despite rising interest rates, the local housing market has shown resilience and continued growth. The rental market, while smaller, has also seen overall price increases, albeit with more fluctuations. These trends reflect a robust and dynamic housing market in this Michigan community, with potential for continued growth in both home values and rental prices in the coming years.
