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Zip Code 55936: Rising Home Values and High Ownership Rates in Grand Meadow, 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 55936, located in Grand Meadow, Minnesota, has exhibited interesting trends in homeownership and housing prices over the past decade. This area has maintained a consistently high rate of homeownership, with a slight increase in recent years, while experiencing significant growth in average home prices.
The homeownership rate in zip code 55936 has shown a steady upward trend, rising from 83% in 2013 to 88% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $122,698, which has nearly doubled to $238,063 by 2022. This represents a remarkable 94% increase in average home values over a nine-year period. The year 2021 saw a particularly sharp increase, with average home prices jumping from $180,629 in 2020 to $207,270, a 14.7% increase in a single year.
Federal interest rates appear to have influenced homeownership rates in this zip code. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates fluctuated between 83% and 85%. As interest rates dropped to near-zero levels in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates began to climb, reaching 87% in 2021 and 88% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in zip code 55936 has decreased slightly over time, from 17% in 2013 to 12% in 2022. Despite this decrease, average rent prices have shown a consistent upward trend. In 2013, the average rent was $702, which increased to $851 by 2022, representing a 21.2% increase over nine years. The population of the zip code has remained relatively stable during this period, fluctuating between 1,148 and 1,261 residents, which suggests that the increase in rent prices is not primarily driven by population growth.
Looking at the most recent data, the average home price in zip code 55936 reached $240,147 in 2023 and further increased to $245,887 in 2024. This represents a 3.3% increase from 2022 to 2024. Interestingly, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, albeit at a slower pace compared to previous years.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 55936 to continue their upward trajectory, potentially reaching around $275,000 to $290,000 by 2029. Average rent prices are also likely to increase, potentially surpassing $950 per month within the next five years. However, the rate of increase may slow down compared to the rapid growth seen in recent years.
In summary, zip code 55936 has demonstrated a strong trend towards homeownership, with rates increasing from 83% to 88% over the past decade. This has been accompanied by significant growth in average home prices, nearly doubling from 2013 to 2022. Despite a decreasing renter population, average rent prices have also shown steady growth. The area has demonstrated resilience in its housing market, with prices continuing to appreciate even in the face of rising interest rates in recent years.
