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Zip Code 49839: Rising Home Values and High Ownership Rates in Rural Grand Marais, 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 49839, located in Grand Marais, Michigan, is a rural area spanning 234.61 square miles. This scenic region has experienced fluctuating homeownership rates and housing prices over the past decade, with a general trend towards increased average home values and a slight decrease in homeownership rates.
The homeownership rate in zip code 49839 has shown a slight downward trend over the years, moving from 87% in 2015 to 83% in 2022. Despite this minor decrease, the area maintains a high rate of owner-occupied housing. Concurrently, average home prices have seen significant growth. In 2016, the average home price was $123,278, which steadily increased to $180,313 by 2022, representing a 46.3% increase over six years.
Federal interest rates have played a role in homeownership trends in the area. From 2016 to 2019, as interest rates rose from 0.4% to 2.16%, homeownership rates in zip code 49839 experienced a slight decline from 90% to 82%. This aligns with the general trend of higher interest rates potentially discouraging home purchases due to increased borrowing costs.
The renter population in zip code 49839 has seen a modest increase, from 13% in 2015 to 16% in 2022. Average rent prices have fluctuated over the years, with notable changes. In 2013, the average rent was $563, which increased to $724 in 2021, representing a 28.6% increase. However, there was a decrease to $653 in 2022, indicating some volatility in the rental market.
Looking at the most recent data, the average home price in zip code 49839 reached $190,836 in 2023 and further increased to $197,203 in 2024. This represents a 5.8% increase from 2022 to 2023 and a 3.3% increase from 2023 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 49839 will continue to rise, potentially reaching around $230,000 by 2029. This projection is based on the consistent upward trend observed since 2016. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of $750-$800 per month by 2029, considering the historical fluctuations and recent upward trend.
In summary, zip code 49839 has demonstrated resilience in maintaining high homeownership rates despite rising home prices. The area has experienced significant appreciation in property values, with average home prices increasing by over 60% from 2016 to 2024. While rental rates have shown some volatility, they have generally trended upward. The interplay between federal interest rates, housing prices, and ownership rates will likely continue to shape the real estate landscape in this Michigan community in the coming years.
