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Zip Code 50518: Rising Home Values and High Ownership Rates in Rural 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 50518, located in Barnum, Iowa, is a small rural area covering 26.07 square miles. This zip code has experienced interesting fluctuations in homeownership rates and housing prices over the past decade. The area has maintained a high percentage of owner-occupied homes, with a general upward trend in average home prices and varying average rent prices.
The homeownership rate in zip code 50518 has shown a notable increase in recent years. In 2013, the ownership rate was 88%, which dipped to 80% in 2016 before rebounding to 94% in 2022. This significant rise in homeownership coincides with an upward trend in average home prices. From 2017 to 2022, average home prices in the area increased steadily from $127,265 to $193,119, representing a substantial 51.7% increase over five years.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite the federal interest rate rising from 1% in 2017 to 1.68% in 2022, the homeownership rate in zip code 50518 increased from 82% to 94% during the same period. This suggests that local factors may have had a stronger influence on homeownership than national interest rates in this particular area.
Renter percentages and average rent prices in zip code 50518 have shown some volatility. The percentage of renters peaked at 19% in 2016 and has since decreased to 6% in 2022. Average rent prices fluctuated considerably, reaching a low of $572 in 2017 and a high of $939 in 2021. Interestingly, as the renter population decreased, average rent prices generally increased, possibly due to limited rental inventory in this small community.
Looking at the most recent data, average home prices in zip code 50518 continued to rise in 2023 and 2024, reaching $195,525 and $197,001 respectively. This represents a modest but steady increase from 2022 prices. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future home buying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 50518 to continue their upward trajectory, potentially reaching around $225,000 by 2029. This projection is based on the consistent growth observed since 2017. For average rent prices, the forecast suggests a more moderate increase, potentially settling around $950-$1,000 per month by 2029, assuming the current trends and local economic conditions persist.
In summary, zip code 50518 has demonstrated a strong preference for homeownership, with rates reaching as high as 94% in recent years. Average home prices have shown steady growth, nearly doubling since 2017. While rental rates have decreased, average rent prices have generally increased, albeit with some fluctuations. The area appears to be resilient to rising interest rates, maintaining high homeownership levels despite recent increases in federal rates. These trends suggest a stable and growing housing market in this rural Iowa community.
