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Zip Code 48506: Rising Home Values and Ownership Rates in Flint, 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 48506, located in Flint, Michigan, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown resilience and adaptation to various economic factors, reflecting the broader trends in the housing market of Flint.
The homeownership rate in zip code 48506 has seen a notable increase from 64% in 2018 to 69% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $42,274 in 2018 to $72,808 in 2022, representing a 72% increase over four years. This trend suggests that despite rising home prices, more residents in the area have been able to enter the housing market as owners.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. Despite historically low interest rates from 2020 to 2021 (0.38% and 0.08% respectively), the homeownership rate remained stable at 67% in 2020 and increased to 69% in 2021. This stability and subsequent increase in homeownership during a period of low interest rates align with the general trend of increased home buying activity when financing costs are lower.
Renter percentages in zip code 48506 have shown a slight decline, moving from 35% in 2018 to 31% in 2022. Interestingly, this decrease in the proportion of renters has been accompanied by an increase in average rent prices. The average rent rose from $804 in 2018 to $829 in 2022, a modest 3.1% increase. This trend suggests that while fewer residents are renting, those who do are facing slightly higher costs.
In 2023 and 2024, the housing market in zip code 48506 has shown some fluctuation. The average home price slightly decreased from $72,808 in 2022 to $72,064 in 2023, but then rebounded to $76,982 in 2024, marking a 6.8% increase from 2023. This growth occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating a resilient local housing market.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices for zip code 48506 over the next five years. Average home prices are projected to increase by approximately 5-7% annually, potentially reaching around $100,000 by 2029. Average rent prices are expected to grow at a more moderate rate of 2-3% per year, potentially reaching close to $950 by 2029.
In summary, zip code 48506 in Flint, Michigan, has demonstrated a strong trend towards increased homeownership and rising home values over the past decade. Despite fluctuations in interest rates and economic conditions, the area has maintained a growing housing market. The slight decrease in the renter population, coupled with modest increases in rent prices, suggests a shift towards a more owner-occupied community. As the area continues to evolve, it is likely to see further growth in property values and a sustained preference for homeownership among its residents.
