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Zip Code 49629: Rising Home Values and Ownership Rates in Elk Rapids, 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 49629, located in Elk Rapids, Michigan, has shown interesting trends in homeownership and housing prices over the past decade. This small community has experienced significant shifts in its real estate market, with notable changes in ownership percentages, average home prices, and average rent prices. The homeownership rate in zip code 49629 has remained relatively high, fluctuating between 75% and 87% from 2013 to 2022. This strong preference for homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $202,072, which steadily rose to $458,558 by 2022, representing a remarkable 127% increase over nine years. The most significant jump occurred between 2020 and 2021, when average home prices surged from $306,500 to $376,663, a 23% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 49629. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the area's high homeownership rates, peaking at 87% in 2019 when the interest rate was 2.16%. The accessibility of affordable financing likely contributed to the sustained high levels of homeownership in the area.
Renter percentages in zip code 49629 have generally been low, ranging from 13% to 25% between 2013 and 2022. Despite the relatively small renter population, average rent prices have shown a significant upward trend. In 2013, the average rent was $603, which increased to $991 by 2022, representing a 64% rise over nine years. The most notable increase occurred between 2015 and 2016, when average rent jumped from $655 to $850, a 30% increase in a single year. These rising rent prices, coupled with the area's small and fluctuating population (1,312 in 2013 to 1,455 in 2022), suggest a tightening rental market with limited supply.
In 2023 and 2024, the real estate market in zip code 49629 continued its upward trajectory. The average home price reached $475,907 in 2023 and further increased to $483,016 in 2024, marking a 5.3% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and price growth in the area.
Looking ahead, based on the historical data and current trends, we can project continued growth in both average home prices and rent prices for zip code 49629 over the next five years. Average home prices are likely to surpass the $500,000 mark within the next two years, potentially reaching around $550,000 by 2029. Average rent prices are expected to continue their upward trend, potentially exceeding $1,200 per month by 2029. However, the pace of growth may moderate due to the current higher interest rate environment.
In summary, zip code 49629 has demonstrated a strong preference for homeownership, with consistently high ownership rates despite rapidly rising home prices. The area has also experienced significant growth in average rent prices, indicating a robust demand for housing in both the ownership and rental markets. The recent increases in federal interest rates may introduce new dynamics to this market, potentially affecting future homeownership rates and price growth trajectories.
