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Zip Code 55432: Fridley, Minnesota's Housing Market Evolution - Average Home Values Double in a Decade
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 55432, located in Fridley, Minnesota, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a general trend of increasing average home prices and fluctuating average rent prices, with homeownership rates showing some variability.
The homeownership rate in zip code 55432 has experienced slight fluctuations over the years. In 2013, the homeownership rate was 67%, which decreased to 63% by 2022. During this period, average home prices saw a significant increase. In 2013, the average home price was $148,311, which rose steadily to $306,833 by 2022, representing a substantial 107% increase over nine years. This trend suggests that while home values have appreciated considerably, it has not necessarily translated into higher homeownership rates.
Federal interest rates have played a role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in zip code 55432 fluctuated between 63% and 67%. The low interest rates likely contributed to maintaining homeownership levels despite rising home prices, as they made mortgage financing more affordable for potential buyers.
Renter percentages in zip code 55432 have shown a slight upward trend, increasing from 32% in 2013 to 37% in 2022. Average rent prices have also generally increased over this period, albeit with some fluctuations. In 2013, the average rent was $1,059, which rose to $1,121 by 2022, representing a 5.9% increase. The population of the zip code has grown from 30,181 in 2013 to 32,677 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in average rent prices.
Looking at the most recent data, the average home price in zip code 55432 reached $309,141 in 2023 and further increased to $314,893 in 2024. This represents a continued upward trend in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and could potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 55432 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $350,000 to $375,000. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,400 per month by 2029, driven by population growth and housing demand in the area.
In summary, zip code 55432 has experienced significant appreciation in average home values over the past decade, with a slight decline in homeownership rates. Renter percentages have increased moderately, accompanied by rising average rent prices. The area has seen population growth, which has likely contributed to the demand for both owned and rented properties. Recent increases in federal interest rates may impact future homeownership trends and property value appreciation rates in this zip code.
