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Zip Code 55320: St. Augusta's Average Home Values and Ownership Trends Reveal Shifting Real Estate Landscape
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
St. Augusta, located in zip code 55320 in Minnesota, has experienced notable shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns in this suburban community.
The homeownership rate in St. Augusta has shown a slight decline over the years, starting at 84% in 2013 and decreasing to 81% by 2022. During this same period, average home prices in the area have seen a significant increase. In 2013, the average home price was $183,773, which steadily rose to $342,087 by 2022, representing an impressive 86% increase over nine years.
The relationship between federal interest rates and homeownership rates in St. Augusta appears to follow the general trend observed nationally. As interest rates remained low between 2013 and 2020, ranging from 0.09% to 0.38%, homeownership rates remained relatively stable, fluctuating between 80% and 84%. However, as interest rates began to rise in 2022 to 1.68%, there was a slight uptick in homeownership to 81%, possibly due to buyers rushing to secure mortgages before rates increased further.
Renter percentages in St. Augusta have shown a gradual increase from 15% in 2013 to 19% in 2022. This trend corresponds with changes in average rent prices, which fluctuated over the years. Average rent prices peaked at $1,057 in 2014, then experienced a decline to $939 in 2017 before rising again to $971 in 2022. The population growth from 4,839 in 2013 to 5,141 in 2022 may have contributed to the increased demand for rental properties, despite the slight variations in rent prices.
In 2023 and 2024, the housing market in St. Augusta continued to evolve. Average home prices reached $346,111 in 2023 and further increased to $354,664 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the observed trends, we can forecast that average home prices in St. Augusta are likely to continue their upward trajectory over the next five years. Assuming a similar growth rate to recent years, average home prices could potentially reach around $425,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or increase slightly, potentially reaching about $1,050 per month in the same timeframe, influenced by factors such as housing demand and economic conditions.
In summary, St. Augusta has experienced a gradual shift towards more renters, albeit with homeownership still dominating at 81% as of 2022. The substantial increase in average home prices, coupled with fluctuating rent prices and rising interest rates, suggests a dynamic housing market that continues to evolve. These trends indicate a growing demand for housing in the area, potentially driven by its suburban appeal and proximity to larger urban centers.
