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Zip Code 55336: Rising Home Values and Resilient Ownership in Glencoe, 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 55336, located in Glencoe, Minnesota, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, covering 136.34 square miles, has seen a general trend of increasing average home prices, while homeownership rates have remained relatively stable with some minor variations.
The homeownership rate in zip code 55336 has shown slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 78%, and by 2022, it had decreased slightly to 77%. During this period, average home prices saw a significant increase. In 2013, the average home price was $123,024, and by 2022, it had risen to $253,350, representing a 105.9% increase over nine years. This substantial rise in home prices did not significantly impact homeownership rates, suggesting a resilient local housing market.
Federal interest rates have played a role in shaping homeownership trends in zip code 55336. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.4%), homeownership rates increased from 78% to 81%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates saw a slight decline to 77%. This inverse relationship between interest rates and homeownership rates aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 55336 have shown a corresponding inverse relationship to homeownership rates. In 2013, the renter percentage was 22%, and it decreased to 18% by 2019 before rising back to 23% in 2022. Interestingly, average rent prices have not shown a consistent correlation with renter percentages. Average rent peaked at $945 in 2017 when the renter percentage was 19%, but then decreased to $725 in 2022 when the renter percentage increased to 23%. This suggests that local factors beyond rent prices, such as job markets or housing availability, may be influencing renting trends.
In 2023, the average home price in zip code 55336 reached $259,636, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $267,904, while interest rates have risen slightly to 5.33%. This continued upward trend in both home prices and interest rates suggests a robust housing market in the area, despite potential challenges to affordability.
Looking ahead, predictive models forecast a continued increase in average home prices for zip code 55336 over the next five years. Based on the historical data and current trends, average home prices could potentially reach around $300,000 by 2029. Rent prices, which have shown more volatility, are predicted to stabilize and potentially see modest increases, possibly reaching an average of $800-$850 per month in the same timeframe.
In summary, zip code 55336 has demonstrated a resilient housing market with steadily increasing average home prices and relatively stable homeownership rates. The area has weathered changes in federal interest rates and economic conditions, maintaining a high proportion of homeowners. The slight increase in renter percentages in recent years, coupled with fluctuating rent prices, suggests a dynamic rental market responding to local economic factors. As the area moves forward, it is likely to see continued growth in property values, presenting both opportunities and challenges for residents and potential homebuyers in this Minnesota community.
