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Zip Code 66049 in Lawrence, Kansas: Rising Home Values and Shifting Ownership Trends
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 66049 in Lawrence, Kansas, has experienced significant changes in its housing market and demographics over the past decade. This 47.61 square mile area has seen notable population growth, fluctuations in homeownership rates, and substantial increases in average home prices. These changes reflect broader economic trends and local market conditions.
The homeownership rate in zip code 66049 has shown a slight downward trend over the years. In 2013, the homeownership rate was 60%, but by 2022, it had decreased to 56%. This 4% decline in homeownership coincides with a significant increase in average home prices. The average home price rose from $207,178 in 2013 to $340,054 in 2022, representing a 64% increase over nine years. This substantial rise in home prices may have contributed to the decline in homeownership rates, potentially making homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in this zip code. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 59-60%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a corresponding decrease in homeownership rates to 57%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership has declined in zip code 66049, the renter population has increased. The percentage of renters rose from 40% in 2013 to 44% in 2022. Interestingly, despite this increase in renter population, average rent prices have not shown a consistent upward trend. In 2013, the average rent was $1,098, and it peaked at $1,129 in 2016 before fluctuating and settling at $1,072 in 2022. This relatively stable rent price, despite increased demand, could be due to various factors such as increased housing supply or local economic conditions.
Recent data for 2023 and 2024 shows that average home prices in zip code 66049 have continued to rise. In 2023, the average home price reached $355,536, and in 2024, it further increased to $365,489, representing a 2.8% increase from 2023 to 2024. Federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may continue to impact homeownership rates in the area.
Predictive models forecasting 5-year trends anticipate that average home prices in zip code 66049 will continue to rise, albeit potentially at a slower rate due to the high interest rate environment. Average rent prices are expected to show modest increases, reflecting the growing renter population and overall housing demand in the area. However, if interest rates remain high, we may see a stabilization or slight decrease in homeownership rates as potential buyers face affordability challenges.
In summary, zip code 66049 in Lawrence, Kansas, has experienced a gradual shift towards a higher proportion of renters, coupled with substantial increases in average home prices. The interplay between rising home prices, fluctuating interest rates, and changing demographics has shaped the local housing market. As the area continues to grow and evolve, these trends will likely play a crucial role in determining future housing affordability and accessibility for residents in this zip code.
