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Zip Code 55926: Rising Home Values and Stable Ownership in Rural 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 55926, located in Dexter, Minnesota, presents an intriguing case study of homeownership and housing market dynamics. This rural area has maintained a consistently high rate of homeownership, averaging around 83% over the past decade. The average home prices in this zip code have shown a steady upward trend, while average rent prices have fluctuated but generally increased over time.
The homeownership rate in zip code 55926 has remained remarkably stable, ranging from 81% to 85% between 2013 and 2022. This stability in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $145,304, which steadily rose to $269,789 by 2022, representing an impressive 85.7% increase over nine years. This trend suggests that despite rising home prices, residents in this area have continued to prioritize homeownership.
Federal interest rates have played a role in shaping homeownership trends in this zip code. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), the homeownership rate remained steady at around 83-84%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 85% in 2019. This could be attributed to residents locking in lower mortgage rates before further increases.
The renter population in zip code 55926 has consistently been a minority, ranging from 15% to 19% between 2013 and 2022. Average rent prices have shown some volatility but with an overall upward trend. In 2013, the average rent was $719, which decreased to $590 in 2016 before rising again to $825 in 2022. This represents a 15% increase in average rent from 2013 to 2022. The fluctuations in rent prices do not seem to have significantly impacted the proportion of renters, suggesting other factors may be at play in this rural community.
In 2023 and 2024, the housing market in zip code 55926 showed interesting developments. The average home price slightly decreased to $265,558 in 2023 but rebounded to $273,326 in 2024. This minor correction and subsequent recovery occurred during a period of significantly higher interest rates, with the federal rate at 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, the housing market in this zip code has demonstrated resilience.
Looking ahead, predictive models suggest that average home prices in zip code 55926 may continue to rise over the next five years, albeit at a more moderate pace. We might expect to see average home prices reach around $300,000 by 2029. Average rent prices are also projected to increase, potentially reaching $900-$950 per month in the same timeframe.
The most significant discoveries in zip code 55926 include the remarkably stable and high homeownership rate, the substantial increase in average home prices over the past decade, and the resilience of the housing market in the face of rising interest rates. The area has maintained its character as a predominantly owner-occupied community despite economic fluctuations. Moving forward, we can expect continued growth in both home values and rent prices, though potentially at a more measured pace than seen in recent years.
