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Zip Code 66026: High Homeownership and Rising Home Values in Rural Fontana, Kansas
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 66026, located in Fontana, Kansas, presents an intriguing demographic and real estate landscape. This area has experienced notable fluctuations in population density and homeownership rates over the past decade, with a general trend towards high owner-occupancy. The average home prices have shown a consistent upward trajectory, while average rent prices have exhibited more moderate increases.
The homeownership rate in zip code 66026 has remained predominantly high, ranging from 85% to 95% between 2013 and 2022. This strong preference for homeownership coincides with a substantial increase in average home prices. In 2010, the average home price was $130,919, which steadily rose to $304,887 by 2022, representing a remarkable 132.9% increase over 12 years. Notably, the most significant jumps occurred in recent years, with a 19% increase from 2020 to 2021 and a 16.6% increase from 2021 to 2022.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained high at 91% and 93%. However, it's worth noting that this area maintained high homeownership rates even during periods of higher interest rates, suggesting other local factors may also play a significant role in housing decisions.
Renter percentages in zip code 66026 have remained relatively low, fluctuating between 5% and 14% from 2013 to 2022. Average rent prices have shown a general upward trend, increasing from $1,249 in 2013 to $1,339 in 2022, an overall increase of 7.2%. Interestingly, there was a notable spike in the renter percentage in 2018 to 14%, coinciding with a significant jump in average rent to $1,347. This could potentially be attributed to the population remaining stable at 633 that year, suggesting a shift in housing preferences or availability.
Looking at the most recent data, average home prices in zip code 66026 continued their upward trajectory, reaching $320,724 in 2023 and further increasing to $334,165 in 2024. This represents a 5.2% year-over-year increase from 2022 to 2023 and a 4.2% increase from 2023 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.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit potentially at a more moderate pace due to the current higher interest rate environment. Average home prices could potentially reach around $400,000 by 2029. Average rent prices are likely to continue their gradual upward trend, potentially reaching approximately $1,500 by 2029, assuming consistent economic conditions and local market factors.
In summary, zip code 66026 demonstrates a strong preference for homeownership, with average home prices showing substantial appreciation over the past decade. Despite rising interest rates, the area has maintained high owner-occupancy rates. The rental market, while smaller, has shown steady growth in average rents. The coming years may see a potential moderation in home price growth and continued gradual increases in rent prices, shaped by broader economic factors and local market dynamics.
