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Zip Code 51648: Rising Home Values and Shifting Ownership in Rural Percival, 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 51648, located in Percival, Iowa, is a rural area characterized by its low population density of 7 people per square mile. This zip code has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 51648 has shown a general decline from 2016 to 2022. In 2016, the area boasted a high 91% homeownership rate, which gradually decreased to 73% by 2022. This trend coincided with an increase in average home prices. In 2019, the average home price was $132,854, rising steadily to $191,538 by 2022, representing a significant 44% increase over just three years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general economic principle that lower interest rates encourage homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate remained relatively stable at 72% and 74%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate slightly decreased to 73%.
Renter percentages in zip code 51648 have shown an inverse relationship to homeownership rates, increasing from 9% in 2016 to 27% in 2022. This shift coincided with a substantial rise in average rent prices. In 2013, the average rent was $515, which increased to $811 by 2022, representing a 57% increase over nine years. The population fluctuations during this period, from 391 in 2013 to 400 in 2022, suggest that changes in rental demand were not solely driven by population growth but potentially by shifts in housing preferences or economic factors.
In 2023 and 2024, the average home prices in zip code 51648 showed a slight decline. The average home price in 2023 was $187,105, down from $191,538 in 2022. This trend continued into 2024, with the average home price further decreasing to $180,612. Notably, federal interest rates increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of the housing market.
Looking ahead, based on recent trends, it's projected that average home prices in zip code 51648 may continue to experience a slight decline or stabilization over the next five years. This forecast takes into account the current high interest rate environment and the recent cooling of home prices. Average rent prices, however, are anticipated to continue their upward trajectory, albeit at a potentially slower rate, driven by the increasing renter population and the overall trend of rising housing costs.
In summary, zip code 51648 has witnessed a shift from a predominantly homeowner market to one with an increasing renter population. This transition has occurred alongside significant increases in both average home prices and rent prices. The recent cooling of the housing market, coupled with rising interest rates, suggests a potential stabilization in home prices, while rent prices are likely to continue their upward trend in the coming years.
