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Zip Code 55346: Resilient Housing Market with Rising Home Values in Eden Prairie, Minnesota
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 55346, located in Eden Prairie, Minnesota, is a suburban area known for its high quality of life and strong community. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 55346 has remained relatively stable, with a slight decrease from 87% in 2015 to 84% in 2022. During this same period, average home prices have shown a significant upward trend. In 2015, the average home price was $309,154, which steadily increased to $460,538 by 2022, representing a substantial 49% increase over seven years. This rise in home prices, despite a minor decline in homeownership rates, suggests a robust housing market with increasing property values.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. This period coincided with stable homeownership rates around 87-88%. However, as interest rates began to rise more sharply in 2022 to 1.68%, we observed a slight decrease in homeownership to 84%. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
Renter percentages in zip code 55346 have shown a gradual increase from 11% in 2015 to 16% in 2022. Concurrent with this trend, average rent prices have also risen, albeit with some fluctuations. In 2015, the average rent was $1,489, which increased to $1,672 by 2022, representing a 12.3% increase. The population in the zip code has also grown from 16,957 in 2015 to 18,072 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at the most recent data, average home prices in zip code 55346 continued to rise in 2023 and 2024, reaching $466,634 and $470,355 respectively. This represents a further 2.1% increase from 2022 to 2024. Interestingly, this growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 55346 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $510,000 by 2029. For rent prices, the upward trend is expected to continue, with average rents potentially reaching around $1,900 by 2029, assuming consistent economic conditions and population growth.
In summary, zip code 55346 has demonstrated a robust housing market over the past decade, with significant increases in both home prices and rent. Despite slight fluctuations in homeownership rates and rising interest rates, property values have shown strong growth. The area's desirability, as evidenced by population growth, suggests continued demand for both owned and rented properties. However, the impact of higher interest rates may moderate price growth in the coming years, potentially affecting affordability and homeownership rates.
