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Zip Code 55032: Rising Home Values and High Ownership Rates in Rural 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 55032, located in Harris, Minnesota, presents an intriguing case study of homeownership and housing market trends. This area has experienced significant shifts in population, homeownership rates, and housing prices over the past decade. The overall trend shows a strong preference for homeownership, with consistently high owner-occupied percentages, while average home prices and rent have generally increased.
The ownership percentage in zip code 55032 has remained notably high, ranging from 89% to 94% between 2013 and 2022. This steadily increasing trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $170,099, which grew dramatically to $370,726 by 2022, representing a 118% increase over nine years. The year 2021 saw a particularly sharp jump in average home prices, rising from $284,548 in 2020 to $335,942, a 18% increase in just one year.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the high homeownership rates during this time. As interest rates began to rise more steadily from 2017 (1%) to 2019 (2.16%), homeownership rates in the zip code continued to climb, reaching 94% by 2019. This suggests that other local factors, such as a strong preference for homeownership in the community, may have outweighed the impact of rising interest rates.
Renter percentages in zip code 55032 have remained consistently low, mirroring the high homeownership rates. The percentage of renters decreased from 11% in 2013 to 6% in 2022. Despite this low renter population, average rent prices have shown significant volatility. In 2013, the average rent was $994, which increased to $1,091 by 2020. However, 2021 saw a dramatic spike in average rent to $1,464, before dropping back to $1,105 in 2022. This volatility in rent prices, despite the low renter population, could be attributed to limited rental inventory and fluctuations in demand.
In 2023 and 2024, the housing market in zip code 55032 continued to evolve. The average home price in 2023 was $372,821, showing a slight increase from 2022. In 2024, the average home price further rose to $378,108. Interestingly, this period also saw a significant increase in federal interest rates, rising from 5.02% in 2023 to 5.33% in 2024. Despite these higher interest rates, which typically dampen housing demand, home prices in the area continued to appreciate, albeit at a slower pace than in previous years.
Looking ahead, predictive models suggest that average home prices in zip code 55032 may continue to rise over the next five years, but at a more moderate pace compared to the rapid growth seen in the early 2020s. Average rent prices are also expected to increase, potentially stabilizing at a higher level than seen in recent years. However, the rate of increase for both home prices and rents may be tempered by the current higher interest rate environment.
In summary, zip code 55032 demonstrates a strong and persistent preference for homeownership, with owner-occupied percentages consistently above 90% in recent years. The area has experienced substantial appreciation in average home prices, particularly from 2013 to 2022. Despite fluctuations in federal interest rates and a recent trend towards higher rates, the local housing market has shown resilience, with continued price appreciation. The rental market, while small, has shown volatility in pricing. These trends suggest a robust and dynamic housing market in zip code 55032, with a clear inclination towards homeownership among residents.
