Loading Content...
Zip Code 55335: Rising Home Values and Shifting Ownership Trends in Rural Minnesota
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 55335, located in Gibbon, Minnesota, presents an intriguing landscape of homeownership and rental trends over the past decade. This rural area, spanning 117 square miles, has seen fluctuations in its population and housing market dynamics. The overall trend shows a slight decrease in homeownership rates accompanied by rising average home prices and rent costs.
The homeownership rate in zip code 55335 has experienced a modest decline from 88% in 2013 to 84% in 2022. During this same period, average home prices have shown a significant upward trend. In 2012, the average home price was $102,990, which steadily increased to $216,177 by 2022, representing a remarkable 110% increase over a decade. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 84-88%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a slight dip in homeownership rates to 84%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 55335 has seen a corresponding increase from 12% in 2013 to 16% in 2022. Interestingly, average rent prices have also risen significantly during this period. In 2013, the average rent was $658, which increased to $1,055 by 2022, representing a 60% increase. This upward trend in both renter percentage and average rent prices suggests a growing demand for rental properties in the area, possibly driven by those priced out of the homeownership market or choosing to rent due to lifestyle preferences or economic factors.
Looking at the most recent data, we see that in 2023, the average home price in zip code 55335 was $209,315, showing a slight decrease from the 2022 peak. In 2024, the average home price further decreased to $204,019. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. This combination of declining home prices and rising interest rates could potentially impact both the homeownership and rental markets in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 55335 may experience a period of stabilization or slight decline due to the current high interest rate environment. However, as the area continues to attract residents, we may see a gradual return to appreciation in the long term. For rent prices, the trend suggests continued growth, albeit at a potentially slower rate than seen in recent years, as the rental market adjusts to changing economic conditions and housing demand.
In summary, zip code 55335 has experienced a notable increase in both average home prices and rent costs over the past decade, accompanied by a slight shift from homeownership to renting. The interplay between federal interest rates, property values, and housing affordability has shaped these trends. Recent data showing a slight cooling in the housing market, coupled with rising interest rates, may lead to a period of adjustment in both the homeownership and rental sectors in the coming years.
