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Zip Code 50211: Rising Home Values and Ownership in Norwalk, Iowa's Growing Suburb
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 50211, located in Norwalk, Iowa, has experienced significant demographic and housing market changes over the past decade. This area has seen a steady increase in homeownership rates alongside fluctuating average home prices and rent costs.
The ownership percentage in zip code 50211 has shown a consistent upward trend, rising from 73% in 2013 to 85% in 2022. This increase in homeownership correlates with the rise in average home prices, which grew from $179,730 in 2013 to $325,628 in 2022, representing an 81% increase over nine years. The most substantial year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $265,147 to $292,621, a 10.4% increase in a single year.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to the increased homeownership, as they made mortgage financing more affordable for potential buyers. For instance, the homeownership rate increased from 74% to 82% between 2014 and 2020, coinciding with interest rates remaining below 2.16%.
As homeownership increased, the percentage of renters in zip code 50211 decreased from 27% in 2017 to 15% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. The average rent peaked at $1,061 in 2014, dropped to $860 in 2019, then rose again to $1,040 in 2021 before decreasing to $893 in 2022. This fluctuation in rent prices, combined with the area's population growth from 11,760 in 2017 to 15,015 in 2022, suggests a complex rental market influenced by various factors including housing supply and demand dynamics.
In 2023 and 2024, the housing market in zip code 50211 showed signs of stabilization. The average home price increased slightly from $325,628 in 2022 to $331,130 in 2023, and then to $331,406 in 2024, indicating a slowing rate of appreciation. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 50211 may continue to rise, but at a more moderate pace compared to the rapid growth seen in previous years. Over the next five years, average home prices could potentially reach around $360,000 to $380,000, assuming current economic conditions and local market factors remain relatively stable. Average rent prices are projected to fluctuate but generally trend upward, potentially reaching $1,100 to $1,200 per month by 2029, reflecting the area's continued population growth and housing demand.
In summary, zip code 50211 has experienced a significant shift towards homeownership, with average home prices rising substantially over the past decade. The rental market has shown volatility, with decreasing renter percentages but fluctuating rent prices. Recent data indicates a potential stabilization in the housing market, with slower price growth and higher interest rates. These trends suggest a maturing real estate market in Norwalk, Iowa, with continued but more moderate growth expected in the coming years.
