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Zip Code 56065: High Homeownership and Rising Home Values in Mapleton, 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 56065, located in Mapleton, Minnesota, presents an interesting case study in homeownership and housing market trends. This area has maintained a relatively high rate of homeownership over the years, with a slight fluctuation in average home prices and rent rates. The overall trend shows a gradual increase in average home values, while homeownership rates have remained fairly stable.
The homeownership rate in zip code 56065 has shown remarkable consistency over the past decade, ranging from 79% to 85%. In 2013, the area boasted an 85% homeownership rate, which slightly decreased to 82% by 2022. This high rate of homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $123,256, which rose to $224,409 by 2022, representing an impressive 82% increase over nine years. This trend suggests that despite rising home values, residents in this area have maintained their ability and desire to own homes.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate in zip code 56065 remained high, between 80% and 85%. As interest rates began to rise more substantially from 2017 onwards, there was a slight dip in homeownership, reaching its lowest point of 79% in 2018 when the federal interest rate hit 1.83%. However, the area's homeownership rate showed resilience, rebounding to 82% by 2022 despite further interest rate increases.
The renter population in zip code 56065 has remained relatively small but has seen some fluctuations. In 2013, renters made up 15% of the population, which increased to 21% by 2018, coinciding with the period of lowest homeownership. Average rent prices have shown some volatility over the years. In 2013, the average rent was $737, which peaked at $897 in 2016 before declining to $718 in 2022. This trend doesn't show a strong correlation with the renter population percentage, suggesting that other factors, such as local economic conditions or housing supply, may have a more significant impact on rent prices in this area.
In 2023 and 2024, the housing market in zip code 56065 continued its upward trajectory. The average home price reached $237,092 in 2023 and further increased to $243,421 in 2024, representing a 5.6% and 2.7% year-over-year growth respectively. This growth occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating strong demand and resilience in the local housing market.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for zip code 56065 over the next five years. Assuming a conservative annual growth rate of 3-4%, average home prices could potentially reach around $290,000 to $300,000 by 2029. Rent prices, which have shown more volatility, may stabilize and increase moderately, potentially reaching an average of $750 to $800 per month in the same timeframe.
In summary, zip code 56065 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing home values. Despite fluctuations in interest rates and modest changes in the renter population, the area has maintained strong property values and a preference for homeownership. The consistent growth in average home prices, even in the face of rising interest rates, suggests a desirable and resilient local real estate market.
