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Zip Code 53156: Average Home Values Soar While Ownership Rates Remain Stable in Palmyra, Wisconsin
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 53156, located in Palmyra, Wisconsin, has experienced notable changes in homeownership rates and housing prices over the past decade. This area, with a population of 2,994 in 2022, has seen fluctuations in both owner-occupied and rental properties, as well as shifts in average home and rent prices.
The homeownership rate in zip code 53156 has shown some variability but has generally remained high. In 2013, the area had a 77% homeownership rate, which increased slightly to 79% in 2014 and 2015. However, there was a gradual decline to 73% by 2019, followed by a recovery to 76% in 2022. This trend has been influenced by various factors, including changes in average home prices. The average home price in the area has seen a consistent upward trend, rising from $175,824 in 2010 to $295,538 in 2022, representing a significant increase of 68% over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 53156. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the relatively high homeownership rates observed during this time. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we saw a corresponding decline in homeownership percentages. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) may have helped stabilize and slightly increase homeownership rates in the following years.
Renter percentages in zip code 53156 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter-occupied percentage rose from 21% in 2014 to a peak of 27% in 2019, before settling at 24% in 2022. Interestingly, average rent prices have not followed a consistent trend. They peaked at $891 in 2015, then generally declined to $669 in 2022, a decrease of about 25% over seven years. This decline in average rent prices, despite an increase in the renter population, could be attributed to various local economic factors or changes in the types of rental properties available.
Looking at the most recent data, the average home price in zip code 53156 continued its upward trajectory, reaching $314,635 in 2023 and further increasing to $327,249 in 2024. This represents a substantial 10.7% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since before 2008. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 53156 will continue to rise, potentially reaching around $380,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and recent accelerated growth. For average rent prices, the forecast is less clear due to recent fluctuations. However, if the local economy remains stable, we might see a gradual increase, potentially reaching around $750 per month by 2029.
In summary, zip code 53156 has maintained a relatively high homeownership rate despite significant increases in average home prices. The interplay between federal interest rates, housing prices, and homeownership rates has been evident, with recent sharp increases in both home prices and interest rates potentially influencing future trends. The rental market has shown more volatility, with decreasing average rents despite periods of increased renter percentages. As the area moves forward, balancing affordability with the growing value of homes will be crucial for maintaining the community's housing dynamics.
