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Zip Code 50140: Resilient Homeownership Amid Fluctuating Home Values in Lamoni, Iowa
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 50140, located in Lamoni, Iowa, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, known for its small-town charm and proximity to Graceland University, has seen shifts in its real estate market that reflect both local and national economic trends.
The homeownership rate in zip code 50140 has remained relatively stable, fluctuating between 56% and 61% from 2013 to 2022. Despite this stability, average home prices have shown a significant upward trend. In 2013, the average home price was $91,050, which increased to $137,450 by 2022, representing a substantial 51% growth over nine years. This rise in home values did not directly correlate with changes in homeownership rates, suggesting that other factors were influencing the market.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in zip code 50140 remained relatively high, averaging around 58.5%. As interest rates began to rise more significantly from 2017 onwards, there was a slight dip in homeownership, reaching 56% in 2018 and 2020. However, by 2022, despite higher interest rates of 1.68%, homeownership rebounded to 60%, indicating resilience in the local housing market.
Renter percentages in zip code 50140 have inversely mirrored homeownership rates, ranging from 39% to 44% between 2013 and 2022. Average rent prices have shown a steady increase during this period, rising from $447 in 2013 to $653 in 2022, a 46% increase. Interestingly, the highest average rent of $665 was recorded in 2019 when the population peaked at 2,789 for the decade, suggesting a correlation between population growth and rental demand.
In 2023, the average home price in zip code 50140 decreased to $130,852, a 4.8% drop from the previous year, while federal interest rates rose sharply to 5.02%. This trend continued into 2024, with average home prices further declining to $125,209 and interest rates increasing to 5.33%. These recent changes indicate a cooling housing market, likely influenced by the higher cost of borrowing.
Looking ahead, predictive models suggest a potential stabilization or slight decrease in average home prices over the next five years, given the current high interest rate environment. Rent prices are expected to continue their upward trajectory, albeit at a slower pace, as demand for rental properties may increase if homeownership becomes less accessible due to higher mortgage rates.
In summary, zip code 50140 has demonstrated a resilient housing market with steadily increasing home values and rent prices over the past decade. However, recent data shows a cooling trend in home prices, likely influenced by rising interest rates. The area's stable homeownership rates, despite fluctuations in home prices and interest rates, suggest a strong local preference for homeownership. As the market adjusts to higher interest rates, we may see a period of price stabilization and potentially increased demand for rentals in the coming years.
