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Zip Code 55382: Rising Home Values and Strong Ownership Trends in Fairhaven, 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 55382, located in Fairhaven, Minnesota, is characterized by a strong trend towards homeownership and significant fluctuations in average home prices and rent over the past decade. The area has maintained a consistently high rate of owner-occupied housing, with the ownership percentage steadily increasing from 93% in 2013 to 95% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices, which grew from $204,098 in 2013 to $390,378 in 2022, representing a remarkable 91% increase over nine years. This correlation suggests that rising property values have not deterred homeownership in the area, possibly indicating strong local economic conditions and a preference for property investment among residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), the homeownership rate remained stable at 92-93%. As interest rates began to rise more noticeably from 2017 (1%) to 2019 (2.16%), the homeownership rate actually increased slightly to 93%, suggesting that other local factors may have outweighed the impact of rising interest rates on homeownership decisions in this zip code.
The renter percentage in zip code 55382 has correspondingly decreased from 7% in 2013 to 5% in 2022. Interestingly, average rent prices have shown a downward trend during this period. In 2013, the average rent was $1,068, which peaked at $1,153 in 2015 before declining to $922 in 2022. This 13.7% decrease in average rent over nine years, coupled with the declining renter percentage, suggests a strong preference for homeownership in the area, possibly driven by the long-term investment potential of rising home values.
In 2023, the average home price in zip code 55382 reached $391,482, showing a slight increase from the previous year. This trend continued into 2024, with average home prices rising to $398,756. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices continued to appreciate, indicating robust demand in the local housing market.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 55382 are likely to continue their upward trajectory over the next five years. Assuming a conservative annual growth rate of 3-4%, average home prices could potentially reach $470,000 to $485,000 by 2029. For average rent prices, the recent stabilization suggests a possible reversal of the previous downward trend. We might expect a modest increase of 1-2% annually, potentially bringing average rents to around $970 to $1,020 by 2029.
In summary, zip code 55382 demonstrates a strong and growing preference for homeownership, with consistently rising average home prices despite fluctuations in interest rates. The area has seen a decrease in both the percentage of renters and average rent prices, further emphasizing the local inclination towards home buying. The continued appreciation of home values, even in the face of rising interest rates, suggests a resilient and attractive housing market in this Minnesota community.
