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Zip Code 49055: Rising Home Values and Stable Ownership in Rural 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 49055, located in Gobles, Michigan, presents an interesting case study of housing trends in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic shifts. The homeownership rate in zip code 49055 has remained relatively stable, with some minor fluctuations. In 2013, the homeownership rate stood at 84%, and by 2022, it had increased slightly to 85%. During this period, average home prices in the area saw a significant upward trend. In 2013, the average home price was $109,956, and by 2022, it had risen to $219,301, representing a substantial increase of 99.4% over nine years. This trend suggests that despite rising home prices, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a role in shaping homeownership trends in zip code 49055. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 81% to 84%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased slightly, reaching 85% in 2022. This suggests that other factors, such as local economic conditions or housing preferences, may have a stronger influence on homeownership in this area than interest rates alone.
Renter percentages in zip code 49055 have shown some variability, ranging from 15% to 21% between 2013 and 2022. Interestingly, average rent prices have not shown a consistent upward trend despite the increase in home prices. In 2013, the average rent was $660, rising to $839 in 2020, but then decreasing to $845 in 2022. This fluctuation in rent prices might be influenced by local factors such as changes in housing supply or shifts in the local job market.
Looking at the most recent data, the average home price in zip code 49055 continued to rise, reaching $223,531 in 2023 and $234,171 in 2024. This represents a 4.8% increase from 2023 to 2024, indicating a continued strong housing market in the area. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in zip code 49055, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $275,000 to $290,000 by 2029. Rent prices may also see moderate increases, potentially reaching an average of $900 to $950 per month in the same timeframe, assuming local economic conditions remain stable.
In summary, zip code 49055 has demonstrated a robust housing market with steadily increasing home prices and relatively stable homeownership rates over the past decade. The area has shown resilience in maintaining high homeownership levels despite rising home prices and fluctuating interest rates. The coming years may present new challenges and opportunities as the housing market adapts to higher interest rates and evolving economic conditions.
