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Zip Code 56236: Rural Minnesota's Home Ownership Surge Amid Fluctuating Values
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
Dumont, located in zip code 56236 in Minnesota, is a small rural community with a population that has fluctuated over the years. In 2022, the population stood at 404 residents. This zip code has experienced interesting shifts in homeownership rates and housing costs over the past decade.
The homeownership rate in Dumont has shown notable fluctuations between 2013 and 2022. In 2013, the homeownership rate was 88%. It remained relatively stable until 2017 when it decreased to 83%. After a brief increase to 85% in 2018, it dropped again to 82% in 2020. Interestingly, there was a significant increase in homeownership in 2022, reaching 91%. This rise in homeownership coincided with the availability of average home price data, which showed an average home price of $169,377 in 2022.
Federal interest rates have played a role in homeownership trends in Dumont. In 2013, when homeownership was at 88%, the federal interest rate was 0.11%. As interest rates remained low through 2020, homeownership rates fluctuated but generally remained above 80%. The significant increase in homeownership to 91% in 2022 occurred despite a rise in the federal interest rate to 1.68%, suggesting other local factors may have influenced this trend.
Renter percentages in Dumont have generally mirrored the inverse of homeownership rates. In 2013, the renter percentage was 12%, and it remained stable until 2017 when it increased to 16%. There was a slight decrease to 15% in 2018, followed by an increase to 17% in 2020. In 2022, the renter percentage dropped significantly to 9%, corresponding with the rise in homeownership. Average rent prices have shown volatility, starting at $512 in 2013, peaking at $765 in 2018, and then settling at $544 in 2022.
In 2023, the average home price in Dumont increased to $174,207, while the federal interest rate rose to 5.02%. Moving into 2024, we see a decrease in the average home price to $158,728, with the federal interest rate further increasing to 5.33%. This recent trend suggests a potential cooling in the housing market, possibly influenced by the higher interest rates.
Looking ahead, predictive models suggest that average home prices in Dumont may continue to fluctuate over the next five years. If the current trend persists, we might see a gradual decrease in home prices, potentially stabilizing around $150,000 by 2029. Average rent prices are predicted to remain relatively stable, possibly fluctuating between $500 and $600, barring any significant economic changes or local developments.
In summary, Dumont has experienced notable shifts in homeownership rates and housing costs. The most striking trend is the recent surge in homeownership to 91% in 2022, despite rising interest rates. The interplay between homeownership rates, average home prices, and federal interest rates presents a complex picture of the local housing market. The recent decrease in average home prices in 2024, coupled with rising interest rates, suggests a potential shift in the market dynamics that will be important to monitor in the coming years.
