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Zip Code 49950: Eagle River's Rising Home Values and High Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 49950, located in Eagle River, Michigan, is a predominantly rural area characterized by its stable housing market and high homeownership rates. Over the past decade, this community has experienced subtle shifts in its ownership patterns and housing prices, reflecting broader economic trends and local dynamics.
The homeownership rate in zip code 49950 has remained consistently high, fluctuating between 87% and 94% from 2013 to 2022. This strong preference for homeownership is a notable feature of the area. Average home prices have shown a general upward trend, increasing from $120,324 in 2010 to $201,598 in 2022, representing a significant 67.5% growth over this period. Interestingly, the peak in homeownership at 94% in 2022 coincided with the highest average home price of $201,598, suggesting that rising property values did not deter local residents from purchasing homes.
The relationship between federal interest rates and homeownership rates in this area appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained high at 88% and 89%. However, the community's consistently high homeownership rates even during periods of higher interest rates suggest that other factors, such as local economic conditions and community preferences, play a significant role in maintaining the strong homeownership culture in this zip code.
Renter percentages in zip code 49950 have been relatively low, ranging from 6% to 13% between 2013 and 2022. Average rent prices have shown some volatility, increasing from $486 in 2013 to a peak of $671 in 2017, before settling at $574 in 2022. Notably, the lowest renter percentage of 6% in 2022 coincided with a slight decrease in average rent to $574, down from $579 in 2021. This could indicate a shift towards homeownership as renting became less prevalent.
In 2023 and 2024, average home prices in zip code 49950 continued their upward trajectory, reaching $207,736 in 2023 and $221,460 in 2024. This represents a further 9.9% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand for housing in this area.
Looking ahead, the 5-year forecast for zip code 49950 indicates a continued upward trend in average home prices, potentially reaching around $250,000 by 2029 if the current growth rate persists. Average rent prices are expected to stabilize, potentially fluctuating between $550 and $650, reflecting the area's preference for homeownership and limited rental market.
In summary, zip code 49950 demonstrates a robust and stable housing market with a strong inclination towards homeownership. The area has shown resilience in maintaining high homeownership rates despite fluctuations in home prices and interest rates. The consistent growth in average home prices, even in the face of rising interest rates, suggests a sustained demand for housing in this Michigan community. These trends point to a continued preference for homeownership and steady property value appreciation in the coming years.
