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Zip Code 52161: Rising Home Values and High Ownership Rates in Ossian, 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 52161, located in Ossian, Iowa, presents an interesting case study in homeownership and housing market trends. This rural area has experienced fluctuations in its population and housing dynamics over the past decade, with a general trend towards stable homeownership rates and increasing property values.
The homeownership rate in zip code 52161 has remained relatively high, hovering around 90% throughout the observed period. In 2013, the homeownership rate was 90%, and it maintained this level with slight variations until 2022, when it stood at 86%. During this same period, average home prices showed a significant upward trend. From 2019 to 2022, average home prices increased from $168,610 to $222,308, representing a substantial 31.8% growth over just three years.
Federal interest rates have played a role in shaping homeownership trends in zip code 52161. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 1.83%. These low rates likely contributed to the area's consistently high homeownership rates by making mortgages more affordable. However, despite a sharp increase in interest rates to 1.68% in 2022, the homeownership rate remained strong at 86%, suggesting other factors such as local economic conditions and housing preferences also influence ownership patterns in this area.
Renter percentages in zip code 52161 have remained relatively low, complementing the high homeownership rates. The renter-occupied percentage increased slightly from 10% in 2013 to 14% in 2022. Average rent prices have shown volatility over the years. In 2013, the average rent was $509, which peaked at $809 in 2016 before declining to $539 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the slight increase in renter percentages, indicating that local factors beyond supply and demand may be influencing rent levels.
In 2023 and 2024, zip code 52161 experienced further changes in its housing market. The average home price reached $230,551 in 2023, showing continued growth from previous years. However, in 2024, there was a slight decrease to $229,081, marking the first decline in average home prices in the observed period. This coincides with federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which may have dampened demand and affected home values.
Looking ahead, based on the historical data and recent trends, we can project potential scenarios for the next five years. Average home prices in zip code 52161 may continue to experience moderate growth, albeit at a slower pace than the rapid increases seen from 2019 to 2023. A conservative estimate might suggest average home prices reaching around $250,000 by 2029. Rent prices, which have shown more volatility, could stabilize and potentially increase moderately, possibly reaching an average of $600-$650 per month by 2029, assuming local economic conditions remain stable and housing demand continues.
In summary, zip code 52161 demonstrates a strong preference for homeownership, with consistently high rates despite fluctuations in home prices and interest rates. The area has seen significant appreciation in property values, particularly from 2019 to 2023. While renter percentages have slightly increased, they remain relatively low. The recent cooling in home price growth and the impact of rising interest rates will be crucial factors to watch in the coming years, potentially influencing both homeownership rates and housing affordability in this Iowa community.
