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Zip Code 56266: Rising Home Values and Stable Ownership in Morgan, 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
Morgan, located in zip code 56266 in Minnesota, is a small rural community with a population that has remained relatively stable over the past decade, hovering around 1,800 residents. This area has consistently maintained a high rate of homeownership, with owner-occupied housing typically accounting for over 80% of residences. The trends in average home prices and average rent have shown notable increases, particularly in recent years.
The homeownership rate in zip code 56266 has remained remarkably steady, fluctuating only slightly between 83% and 86% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $96,303, which steadily increased to $148,159 by 2022, representing a substantial 53.8% increase over nine years. This trend suggests a strong correlation between stable homeownership rates and rising property values in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), homeownership rates in the zip code remained stable at around 83-84%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased slightly to 85%. This suggests that despite rising interest rates, the area maintained its attractiveness for homeowners, possibly due to other local economic factors or the relative affordability of homes compared to urban areas.
Renter percentages in zip code 56266 have consistently remained low, ranging from 14% to 17% between 2013 and 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $540, which remained relatively stable until 2019 at $549. However, there was a dramatic increase in average rent prices from 2020 onwards, reaching $975 in 2022. This represents an 80.6% increase in just three years, which is particularly notable given the area's stable population and low percentage of renters.
Looking at the most recent data, the average home price in zip code 56266 reached $154,885 in 2023 and further increased to $160,205 in 2024. This continued upward trend in home values occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, the local housing market has demonstrated resilience and continued growth.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and average rent prices in zip code 56266. Based on the historical data and recent trends, average home prices could potentially reach around $190,000 to $200,000 by 2029. Average rent prices, if they continue their recent steep trajectory, could potentially exceed $1,200 per month within the same timeframe.
In summary, zip code 56266 in Morgan, Minnesota, demonstrates a stable, predominantly homeowner-occupied community with steadily increasing property values. The area has shown resilience to rising interest rates, maintaining high homeownership rates even as home prices continue to climb. The rental market, while small, has seen dramatic price increases in recent years, outpacing the growth in home values. These trends suggest a robust local housing market with potential for continued growth in both the homeownership and rental sectors.
