Loading Content...
Zip Code 48770: Rising Home Values and Strong Ownership in Rural Michigan
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 48770, located in Whittemore, Michigan, presents an intriguing case study of homeownership and housing market trends. This area has experienced significant shifts in ownership percentages and housing prices over the past decade, reflecting broader economic changes and local market dynamics. The homeownership rate in zip code 48770 has shown a notable increase from 2013 to 2022. In 2013, the percentage of owner-occupied homes stood at 82%, and by 2019, it reached its peak at 89%. However, there was a slight decrease to 85% by 2022. This trend coincides with fluctuations in average home prices. In 2013, the average home price was $62,291, which steadily increased to $118,611 by 2022, representing a substantial 90.4% growth over this period.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates increased from 82% to 85%. This aligns with the principle that lower interest rates typically encourage homeownership due to more affordable financing options.
Renter percentages in zip code 48770 have shown a downward trend, decreasing from 18% in 2013 to 15% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $568, which increased to $615 in 2015 but then decreased to $491 by 2022. This 13.6% decrease in average rent over the decade is notable, especially considering the area's population decline from 1,616 in 2013 to 1,542 in 2022, which may have contributed to reduced rental demand.
Looking at the most recent data, the average home price in zip code 48770 reached $123,123 in 2023 and further increased to $124,566 in 2024. This represents a continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 48770 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $140,000 to $150,000. For rent prices, the forecast suggests a potential stabilization or slight increase, with average rents possibly reaching $550 to $600 by 2029, assuming economic conditions and population trends remain relatively stable.
In summary, zip code 48770 has experienced a significant increase in homeownership rates and average home prices over the past decade, while seeing a decrease in the renter population and fluctuating rent prices. The recent sharp rise in interest rates may moderate the growth in home prices and potentially impact homeownership rates in the coming years. These trends reflect the dynamic nature of the local housing market and its responsiveness to broader economic factors.
