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Zip Code 51654: Rising Home Values and Strong Ownership Trends 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 51654, located in Thurman, Iowa, is a rural area spanning 51.51 square miles. This small community has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local dynamics.
The homeownership rate in zip code 51654 has shown a general decline from 2013 to 2022. In 2013, the area boasted a high homeownership rate of 83%, which peaked at 89% in 2016. However, by 2022, this figure had decreased to 74%. Concurrently, average home prices have shown an upward trend. From 2019 to 2022, average home prices increased from $133,085 to $187,361, representing a significant 40.8% increase over just three years.
The relationship between federal interest rates and homeownership rates in this area appears to follow expected patterns. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates were at their highest, peaking at 89% in 2016. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined, dropping to 74% by 2022.
Renter percentages in zip code 51654 have shown an inverse relationship to homeownership rates, increasing from 17% in 2013 to 25% in 2022. Average rent prices have fluctuated over this period but generally trended upward. In 2013, the average rent was $565, which rose to $947 in 2016 before dropping to $577 in 2017. By 2022, the average rent had increased to $712, representing a 26% increase from 2013 levels. These changes in rent prices and renter percentages occurred against a backdrop of population decline, from 378 residents in 2013 to 335 in 2022.
In 2023 and 2024, average home prices in zip code 51654 showed a slight decline, dropping from $187,361 in 2022 to $185,190 in 2023 and further to $182,390 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and demand.
Looking ahead, based on recent trends, we can project that average home prices in zip code 51654 may continue to experience modest declines or stabilize over the next five years, influenced by higher interest rates. Average rent prices, however, are likely to continue their upward trajectory, albeit at a slower pace, driven by the increasing percentage of renters in the area.
In summary, zip code 51654 has experienced a shift from high homeownership to increased renting over the past decade, with corresponding changes in housing and rental prices. The recent rise in interest rates appears to be cooling the housing market, while the rental market continues to strengthen. These trends reflect the complex interplay of economic factors, population changes, and housing market dynamics in this rural Iowa community.
