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Zip Code 50320: Rising Home Values and Ownership Rates in Des Moines, 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 50320, located in Des Moines, Iowa, covers an area of 17.01 square miles. This suburban area has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend shows an increase in homeownership, rising average home prices, and fluctuating average rent prices.
From 2013 to 2022, the percentage of owner-occupied homes in zip code 50320 increased from 71% to 75%. During this same period, average home prices saw a substantial rise. In 2013, the average home price was $136,563, which steadily increased to $235,946 by 2022, representing a 72.8% increase over nine years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in zip code 50320 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, from 2013 to 2016, when interest rates remained below 0.5%, homeownership rates declined slightly from 71% to 66%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates also increased, reaching 75% in 2022. This counterintuitive trend might suggest that other local factors were influencing homeownership decisions in this specific zip code.
The percentage of renters in zip code 50320 decreased from 28% in 2013 to 25% in 2022. Average rent prices, however, showed an overall upward trend with some fluctuations. In 2013, the average rent was $895, which decreased to $864 in 2016 before rising to $981 in 2022. This represents a 9.6% increase in average rent prices over the nine-year period. The population growth from 18,878 in 2013 to 21,954 in 2022 might have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.
In 2023, the average home price in zip code 50320 reached $244,016, with interest rates at 5.02%. By 2024, the average home price further increased to $252,007, while interest rates rose to 5.33%. These figures indicate a continued upward trend in both home prices and interest rates, potentially impacting affordability and homeownership rates in the near future.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 50320 to continue rising, potentially reaching around $300,000 by 2029. Average rent prices are also likely to increase, potentially surpassing $1,100 per month within the same timeframe. These predictions are based on the historical trends observed in the data and assume relatively stable economic conditions.
In summary, zip code 50320 has experienced a significant increase in homeownership rates and average home prices over the past decade, while average rent prices have shown more modest growth. The area has demonstrated resilience in terms of homeownership, even in the face of rising interest rates. The continued population growth and increasing property values suggest that this zip code remains an attractive area for both homeowners and investors.
