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Zip Code 49636: Glen Arbor's Soaring Home Values and High Ownership Rates
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
Glen Arbor, located in zip code 49636 in Michigan, is a small community known for its picturesque landscapes and proximity to Sleeping Bear Dunes National Lakeshore. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards high owner occupancy and increasing average home values.
The homeownership rate in Glen Arbor has remained consistently high, reaching a peak of 98% in 2017. This trend coincided with a steady increase in average home prices, which rose from $377,732 in 2010 to $609,114 in 2022, representing a 61% increase over this period. The relationship between homeownership and average home prices appears to be relatively stable, with minor fluctuations. For instance, in 2016, when the homeownership rate was 96%, the average home price was $365,532. By 2022, with a homeownership rate of 91%, the average home price had increased to $609,114.
Federal interest rates have played a role in homeownership trends in Glen Arbor. The period of low interest rates from 2010 to 2021, ranging from 0.08% to 2.16%, corresponded with the area's high homeownership rates. For example, in 2013, when the interest rate was 0.11%, the homeownership rate was 91%. As interest rates began to rise in 2022 to 1.68%, the homeownership rate remained high at 91%, suggesting a resilient local housing market.
Renter percentages in Glen Arbor have been consistently low, ranging from 2% to 9% between 2013 and 2022. Average rent prices have shown significant volatility, with notable increases in recent years. In 2013, the average rent was $457, dropping to $385 in 2018, before rising sharply to $705 in 2022. This 83% increase in average rent from 2018 to 2022 occurred despite relatively stable renter percentages, indicating factors beyond simple supply and demand may be influencing rental prices.
In 2023, the average home price in Glen Arbor slightly decreased to $607,787, while federal interest rates rose to 5.02%. Moving into 2024, the average home price increased to $631,746, with interest rates further rising to 5.33%. This suggests that the local housing market remains strong despite higher borrowing costs.
Looking ahead, predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $730,000 by 2029. Average rent prices are expected to continue their upward trajectory, with an estimated annual increase of 4-6%, potentially reaching $900 per month by 2029.
In summary, Glen Arbor (49636) demonstrates a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The area has shown resilience to rising interest rates, maintaining strong property values. The rental market, while small, has seen significant price increases in recent years. These trends suggest a continued strong demand for housing in this desirable Michigan location, with both ownership and rental costs likely to continue their upward trajectory in the coming years.
