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Zip Code 52227: Ely, Iowa's Rising Home Values and Ownership Amid Rental Market Volatility
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 52227, located in Ely, Iowa, has experienced significant changes in population, homeownership rates, and housing prices over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in the rental market. The ownership percentage in zip code 52227 has shown a steady increase from 79% in 2013 to 82% in 2022, indicating a growing preference for homeownership in the area. This trend coincides with a substantial rise in average home prices, which increased from $193,477 in 2013 to $321,185 in 2022, representing a 66% increase over nine years. The relationship between ownership rates and home prices suggests that despite rising costs, residents in this zip code have maintained a strong desire for homeownership. Federal interest rates have played a significant role in homeownership trends in zip code 52227. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), the homeownership rate increased from 79% to 80%. As interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), the homeownership rate stabilized at 81%. Interestingly, the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a spike in homeownership to 86% in 2020, likely due to more affordable financing options.
The rental market in zip code 52227 has shown some fluctuations over the years. The percentage of renters decreased from 21% in 2013 to 18% in 2022. Average rent prices have been relatively stable, with some minor fluctuations. In 2013, the average rent was $749, which decreased to $713 in 2018, before rising again to $783 in 2022. These changes in rent prices and renter percentages may be influenced by the area's growing population, which increased from 3,178 in 2013 to 3,909 in 2022, potentially affecting housing demand and availability.
Looking at the most recent data, average home prices in zip code 52227 continued to rise, reaching $337,271 in 2023 and $344,924 in 2024. This represents a 7.3% increase from 2022 to 2024. Simultaneously, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 52227 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $380,000 to $400,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching $850 to $900 per month in the same timeframe.
In summary, zip code 52227 has demonstrated a strong trend towards homeownership, with consistently high owner-occupancy rates despite rising home prices. The area has shown resilience in maintaining its attractiveness to homeowners, even in the face of fluctuating interest rates and increasing property values. The rental market, while smaller, has remained relatively stable. As the population continues to grow and housing prices rise, it will be crucial to monitor how these trends impact housing affordability and community dynamics in this Iowa zip code.
