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Zip Code 55751: Rising Home Values and High Ownership Rates in Mountain Iron, 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 55751, located in Mountain Iron, Minnesota, presents an interesting case study of homeownership and housing market trends. This area has maintained exceptionally high rates of owner-occupied housing, with a slight upward trend in average home prices and fluctuating average rent prices over the past decade.
The homeownership rate in zip code 55751 has been consistently high, ranging from 91% to 95% between 2013 and 2022. This strong preference for homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $112,536, which rose to $199,960 by 2022, representing a 77.7% increase over nine years. Despite this significant price appreciation, the homeownership rate remained stable and even slightly increased, reaching 95% in 2022. This suggests that rising home values did not deter local residents from purchasing homes, possibly due to strong community ties or the perceived investment value of real estate in the area.
Federal interest rates have played a role in supporting high homeownership rates in zip code 55751. From 2013 to 2016, interest rates remained below 0.5%, which likely contributed to maintaining the high homeownership levels observed during this period. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in the zip code actually increased slightly from 93% in 2016 to 95% in 2022. This suggests that local factors may have a stronger influence on homeownership decisions in this area than national interest rate trends.
The renter population in zip code 55751 has remained consistently low, ranging from 4% to 9% between 2013 and 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $763, which increased to a peak of $990 in 2016 before declining to $733 in 2022. This represents a 4% decrease in average rent over the nine-year period, despite the overall population decline from 1,383 in 2013 to 1,251 in 2022. The low percentage of renters and decreasing population may contribute to the relatively stable rent prices, as demand for rental properties remains limited.
In 2023 and 2024, the housing market in zip code 55751 continued to show growth. The average home price reached $211,311 in 2023 and further increased to $215,634 in 2024, representing a 7.8% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. The continued appreciation in home values suggests strong local demand or limited housing supply in the area.
Looking ahead, based on the observed trends, we can forecast potential scenarios for the next five years. Average home prices in zip code 55751 may continue to appreciate, potentially reaching around $240,000 to $250,000 by 2029, assuming a similar growth rate. However, this growth could be moderated by high interest rates if they persist. Average rent prices might stabilize or show modest increases, potentially ranging from $750 to $850, given the area's low renter population and historical rent fluctuations.
In summary, zip code 55751 demonstrates a remarkably stable and high rate of homeownership, with steadily increasing average home prices despite population decline. The area has shown resilience to rising interest rates, maintaining strong homeownership levels. The rental market remains a small segment of the housing landscape, with average rent prices showing more volatility than home prices. These trends suggest a community deeply committed to homeownership, with potential for continued growth in home values in the coming years.
