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Zip Code 54539: Lake Tomahawk's Steady Home Values and High Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 54539, located in Lake Tomahawk, Wisconsin, is a predominantly owner-occupied area with a strong trend of increasing homeownership over the past decade. This rural community has experienced significant growth in average home prices and average rent prices, reflecting its increasing desirability as a residential area.
The homeownership rate in zip code 54539 has shown a steady upward trend, increasing from 90% in 2013 to 94% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2011, the average home price was $144,991, and by 2022, it had nearly doubled to $280,424, representing a 93.4% increase over 11 years. This trend suggests a strong correlation between rising home values and increased homeownership rates in the area.
Federal interest rates have played a role in homeownership trends in zip code 54539. From 2011 to 2015, when interest rates were historically low (ranging from 0.10% to 0.13%), homeownership rates increased from 90% to 92%. This period of low interest rates likely contributed to more affordable financing options for potential homebuyers. As interest rates began to rise from 2016 onwards, homeownership rates remained stable, indicating the area's strong appeal to homeowners despite changing financial conditions.
The renter population in zip code 54539 has remained relatively small, fluctuating between 6% and 8% from 2013 to 2022. Despite this small percentage, average rent prices have shown significant volatility. In 2013, the average rent was $866, rising to a peak of $1,028 in 2021, before slightly decreasing to $912 in 2022. This represents a 5.3% increase in average rent over the nine-year period. The fluctuations in rent prices may be influenced by the limited rental inventory in the area, causing small changes in supply or demand to have outsized effects on prices.
In 2023 and 2024, the housing market in zip code 54539 continued to evolve. The average home price reached $289,539 in 2023, showing a 3.3% increase from 2022. However, in 2024, there was a slight decrease to $288,275, marking a 0.4% decline. This recent trend coincides with significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer demand.
Looking ahead, predictive models suggest that average home prices in zip code 54539 may continue to increase moderately over the next five years, albeit at a slower pace than the rapid growth seen in the past decade. Average rent prices are expected to stabilize and potentially see modest increases, reflecting the area's limited rental market and strong preference for homeownership.
In summary, zip code 54539 has demonstrated a robust trend towards homeownership, with steadily increasing rates and significant appreciation in average home values. The area has maintained a small but persistent rental market with volatile rent prices. Recent data shows a potential cooling in the housing market, likely influenced by rising interest rates. These trends paint a picture of a desirable residential area with a strong preference for homeownership and potential for continued, though more moderate, growth in property values.
