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Zip Code 66409: Rising Home Values and High Ownership Rates in Topeka, 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 66409, located in Topeka, Kansas, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a high rate of owner-occupied housing, with average home prices steadily increasing and average rent prices fluctuating over time.
The ownership percentage in zip code 66409 has remained consistently high, ranging from 88% to 95% between 2013 and 2022. During this period, average home prices showed a strong upward trend. In 2013, the average home price was $183,644, which increased to $325,910 by 2022, representing a substantial 77.5% growth over nine years. This trend suggests a robust demand for homeownership in the area, despite the rising prices. The year 2021 saw a particularly significant jump in average home prices, rising from $252,956 in 2020 to $288,814, a 14.2% increase in just one year.
Federal interest rates have played a role in homeownership trends in zip code 66409. From 2013 to 2016, interest rates remained extremely low, below 0.5%, coinciding with homeownership rates of 91-93%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates slightly decreased to 88% in 2019. However, when interest rates dropped again in 2020 and 2021 to near-zero levels, homeownership bounced back to 93% and then 95% in 2021 and 2022, respectively.
Renter percentages in zip code 66409 have remained relatively low, ranging from 5% to 12% between 2013 and 2022. Interestingly, average rent prices have shown a general downward trend during this period. In 2013, the average rent was $1,350, which decreased to $698 by 2022, a 48.3% reduction. This decline in rent prices occurred despite a growing population, which increased from 3,700 in 2013 to 4,044 in 2022. The most significant drop in average rent was observed between 2020 and 2021, falling from $716 to $523, a 27% decrease in a single year.
In 2023, the average home price in zip code 66409 continued its upward trajectory, reaching $345,659, a 6.1% increase from 2022. This growth persisted into 2024, with the average home price rising to $358,637, marking a further 3.8% increase. Notably, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the observed trends, we can anticipate that average home prices in zip code 66409 will continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices, which have been declining, may stabilize or potentially see slight increases as the housing market adjusts to higher mortgage rates, potentially making renting more attractive for some residents.
In summary, zip code 66409 has maintained a strong homeownership market with consistently rising average home prices, despite recent increases in interest rates. The area has also experienced a unique trend of declining average rent prices amid population growth, suggesting a complex interplay of local economic factors influencing the housing market in this Topeka, Kansas neighborhood.
