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Zip Code 51559: Average Home Values and Ownership Trends in Neola, Iowa's Robust Housing Market
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 51559, located in Neola, Iowa, has experienced significant demographic and housing market changes over the past decade. This area has seen fluctuations in homeownership rates, along with steady increases in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 51559 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate was 81%, and by 2022, it had decreased slightly to 79%. During this period, average home prices in the area saw a substantial increase. In 2013, the average home price was $138,634, and by 2022, it had risen to $261,802, representing an impressive 88.8% increase over nine years. This upward trend in home prices, coupled with a relatively stable homeownership rate, suggests a resilient housing market in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, ranging from 0.11% to 0.40%. During this period, the homeownership rate in zip code 51559 remained steady at around 80-81%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, there was a slight decline in homeownership to 79%. This trend aligns with the general expectation that lower interest rates encourage homeownership due to more affordable financing options.
Renter percentages in zip code 51559 have shown slight increases over the years, rising from 19% in 2013 to 21% in 2022. Correspondingly, average rent prices have also increased. In 2013, the average rent was $737, and by 2022, it had risen to $840, representing a 14% increase. The population of the zip code has grown from 2,416 in 2013 to 2,534 in 2022, a 4.9% increase. This population growth, coupled with rising rent prices, suggests a growing demand for rental properties in the area.
In 2023 and 2024, the housing market in zip code 51559 continued its upward trajectory. The average home price reached $272,979 in 2023 and further increased to $284,272 in 2024, representing a 4.3% year-over-year growth. This growth occurred despite significantly higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating a robust local housing market that remained resilient in the face of higher borrowing costs.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in zip code 51559 to continue their upward trajectory over the next five years. Assuming a conservative annual growth rate of 4%, average home prices could potentially reach around $345,000 by 2029. Average rent prices are also likely to increase, albeit at a slower pace. With an estimated annual growth rate of 2%, average rent could approach $930 by 2029.
In summary, zip code 51559 has demonstrated a strong and resilient housing market over the past decade. Despite slight fluctuations in homeownership rates and increasing interest rates, average home prices have shown substantial growth. The rental market has also experienced steady increases in both demand and prices. With continued population growth and a robust local economy, both the homeownership and rental markets in this area are poised for further growth in the coming years.
