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Zip Code 56060: Rising Home Values and Stable Ownership in Rural Lewisville, 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 56060, located in Lewisville, Minnesota, is a small rural area characterized by a strong preference for homeownership and fluctuating property values. Over the past decade, this community has experienced notable shifts in its housing market dynamics, with ownership rates generally remaining high despite variations in average home prices and rent costs.
The homeownership rate in zip code 56060 has shown remarkable stability, consistently hovering above 80% throughout the observed period. In 2013, the ownership rate stood at 87%, and by 2022, it remained robust at 84%. This high rate of homeownership persisted even as average home prices saw significant increases. For instance, the average home price rose from $62,281 in 2012 to $148,889 in 2022, representing a substantial 139% increase over a decade. This trend suggests a strong local preference for homeownership, even in the face of rising property values.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2012 to 2016 saw historically low interest rates, ranging from 0.14% to 0.4%, which coincided with a period of stable homeownership rates in zip code 56060. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed only minor fluctuations, demonstrating the area's resilience to changing financial conditions.
Renter percentages in zip code 56060 have remained relatively low, complementing the high homeownership rates. In 2013, renters made up 13% of occupants, and this figure stood at 16% in 2022. Interestingly, average rent prices have shown considerable volatility. They peaked at $550 in 2013, dropped to $280 in 2017, and then rebounded to $466 by 2022. This fluctuation in rent prices, coupled with the area's small population (336 in 2022), suggests a limited and potentially variable rental market.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 56060. In 2023, the average home price reached $163,199, and in 2024, it further increased to $166,883. This represents a 12% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for zip code 56060 over the next five years. If the current trajectory holds, average home prices could potentially reach around $200,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict but may stabilize around the $500 mark, assuming no major economic disruptions.
In summary, zip code 56060 demonstrates a strong and persistent culture of homeownership, with average home prices showing substantial growth over time. Despite fluctuations in the rental market and rising interest rates, the community has maintained high rates of owner-occupied housing. The area's small population and rural setting contribute to a unique housing market dynamic, where homeownership remains the predominant choice for residents, even as property values continue to appreciate.
