Loading Content...
Zip Code 66856: Rising Home Values and Ownership Rates in Rural Kansas
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 66856, located in Lebo, Kansas, presents an intriguing case study of homeownership and rental trends. This rural area has experienced significant shifts in its housing market over the past decade, with a notable increase in homeownership rates and fluctuating average home and rent prices.
The trend between ownership percentage and average home prices in zip code 66856 shows a strong positive correlation. From 2013 to 2022, homeownership rates rose steadily from 79% to 90%, while average home prices increased from $99,579 to $176,553. This substantial 77.3% increase in average home prices coincided with an 11 percentage point increase in homeownership. The most dramatic rise in homeownership occurred between 2021 and 2022, jumping from 87% to 90%, while average home prices surged by 13.8% in the same period.
Federal interest rates have played a significant role in shaping homeownership trends in this area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1%, which coincided with an increase in homeownership from 79% to 83%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership continued to climb, reaching its peak of 90% in 2022. This suggests that other local factors may have outweighed the impact of rising interest rates on homeownership in this particular zip code.
Renter percentages and average rent prices in zip code 66856 have shown an inverse relationship to homeownership trends. As the percentage of renters decreased from 21% in 2013 to 10% in 2022, average rent prices increased from $594 to $813, a 36.9% rise. This trend indicates that despite the shrinking rental market, demand for rental properties remained strong enough to drive up prices. The population fluctuated during this period, peaking at 1,565 in 2012 and settling at 1,507 in 2022, which may have contributed to the rental market dynamics.
In 2023 and 2024, the housing market in zip code 66856 continued to evolve. Average home prices reached $182,303 in 2023 and further increased to $187,370 in 2024, representing a 2.8% and 6.1% year-over-year growth, respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 66856 will continue to rise over the next five years, albeit at a more moderate pace. A conservative estimate suggests an annual growth rate of 3-4%, potentially reaching around $220,000 by 2029. Average rent prices are also expected to increase, possibly at a rate of 2-3% annually, potentially reaching approximately $940 by 2029.
In summary, zip code 66856 has experienced a significant shift towards homeownership, with a 90% ownership rate in 2022. This trend has been accompanied by substantial increases in both average home prices and rent prices. Despite rising interest rates, the area has maintained strong homeownership growth, suggesting robust local economic factors. The continued rise in home prices through 2024, even with higher interest rates, indicates a resilient housing market in this Kansas community.
