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Zip Code 55013: Home Values and Ownership Trends in Chisago City, Minnesota
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 55013, located in Chisago City, Minnesota, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 55013 has remained relatively stable over the years, with a slight decrease observed recently. In 2013, the homeownership rate stood at 85%, and it maintained this level through 2019. However, there was a notable drop to 78% in 2020 and 2021, before slightly recovering to 80% in 2022. This trend coincides with changes in average home prices, which have shown a consistent upward trajectory. The average home price in 2013 was $193,969, and it steadily increased to $421,706 by 2022, representing a substantial 117% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 55013. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the stable homeownership rates during this time. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observe that homeownership rates remained steady at 85-86%. However, the sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 didn't prevent the decline in homeownership to 78%, suggesting other factors were at play.
The rental market in zip code 55013 has shown interesting trends as well. The percentage of renters increased from 14% in 2015 to 22% in 2021, before slightly decreasing to 20% in 2022. This trend has been accompanied by significant fluctuations in average rent prices. In 2013, the average rent was $922, which decreased to $877 in 2015 before rising sharply to $1,207 in 2017. The average rent continued to increase, reaching $1,338 in 2021, before slightly decreasing to $1,222 in 2022. These changes in the rental market may be influenced by factors such as population growth, which increased from 6,715 in 2013 to 7,451 in 2022, potentially creating more demand for rental properties.
Looking at the most recent data, the average home price in zip code 55013 slightly decreased from $421,706 in 2022 to $418,300 in 2023, before showing a small increase to $421,176 in 2024. This recent stabilization in home prices occurs against a backdrop of significantly higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be tempering home price growth and affecting affordability for potential buyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 55013 will continue to rise, albeit at a more moderate pace than seen in recent years. The average home price is projected to reach approximately $460,000 by 2029. For average rent prices, the forecast suggests a continued upward trend, potentially reaching around $1,500 per month by 2029. These projections take into account historical trends, current market conditions, and anticipated economic factors.
In summary, zip code 55013 has experienced a significant increase in average home prices over the past decade, with a recent stabilization. Homeownership rates have slightly decreased, while the rental market has expanded. The interplay between federal interest rates, population growth, and local market dynamics has shaped these trends. Moving forward, we expect continued growth in both home prices and rent prices, though at a more moderate pace than in recent years.
