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Zip Code 55107: Home Values and Ownership Trends in St. Paul's Resilient Housing Market
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 55107, located in St. Paul, Minnesota, covers an area of 4.64 square miles. This urban neighborhood has experienced significant changes in homeownership rates and housing prices over the past decade, reflecting the dynamic nature of the local real estate market.
The homeownership rate in zip code 55107 has shown a general upward trend, increasing from 53% in 2019 to 59% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $123,181, which steadily rose to $261,573 by 2022, representing a substantial 112% increase over nine years. The most dramatic price surge occurred between 2020 and 2021, with average home prices jumping from $220,489 to $247,672, a 12.3% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.08% to 1.68%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more affordable for potential buyers. The sharp rise in homeownership from 54% in 2020 to 59% in 2022 coincided with interest rates remaining relatively low, at 0.08% in 2021 and 1.68% in 2022.
Renter percentages in zip code 55107 have inversely mirrored the homeownership trend, decreasing from 47% in 2019 to 41% in 2022. Despite this decline in the proportion of renters, average rent prices have shown an overall upward trajectory. In 2013, the average rent was $895, which increased to $978 by 2022, representing a 9.3% rise over nine years. The highest average rent was recorded in 2021 at $1,060, before slightly decreasing in 2022. The population has remained relatively stable during this period, fluctuating between 14,671 and 15,535 residents, suggesting that changes in rent prices were not primarily driven by population shifts.
In 2023, the average home price in zip code 55107 slightly decreased to $259,312, a 0.9% drop from the previous year. This minor correction occurred as interest rates sharply increased to 5.02% in 2023. Moving into 2024, the average home price has rebounded slightly to $262,485, while interest rates have further climbed to 5.33%. These higher interest rates may impact future homeownership trends and price growth in the area.
Looking ahead, predictive models suggest that average home prices in zip code 55107 may continue to rise modestly over the next five years, potentially reaching around $290,000 by 2029. However, this growth rate is expected to be more moderate compared to the rapid increases seen in the early 2020s. Average rent prices are also projected to increase, potentially reaching approximately $1,100 by 2029, assuming consistent economic conditions and housing demand.
In summary, zip code 55107 has experienced a notable increase in homeownership rates and average home prices over the past decade, likely influenced by historically low interest rates. The area has seen a corresponding decrease in the percentage of renters, although average rent prices have generally trended upward. Recent data from 2023 and 2024 indicate a slight cooling in the housing market, possibly due to rising interest rates. Moving forward, both home prices and rents are expected to continue their upward trajectory, albeit at a more measured pace.
