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Zip Code 67480: Rising Home Values and High Ownership Rates in Rural 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 67480, located in Solomon, Kansas, has experienced notable shifts in housing dynamics over the past decade. This rural area, spanning 166.14 square miles, has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 67480 has remained relatively high but fluctuated over the years. In 2013, 84% of residents owned their homes, and this percentage increased slightly to 86% by 2015. However, there was a decline to 79% in 2019, followed by a recovery to 83% in 2022. Concurrently, average home prices have shown a steady upward trend. In 2012, the average home price was $109,081, and it rose consistently, reaching $165,563 by 2022, representing a 51.8% increase over this period. This trend suggests that despite rising home prices, homeownership has remained attractive in this area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, ranging from 0.09% to 0.40%, which coincided with high homeownership rates of 84-86%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership to 79%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a rebound in homeownership to 81% and 86% respectively.
Renter percentages have inversely mirrored homeownership trends, ranging from a low of 14% in 2014-2015 to a high of 21% in 2019. Average rent prices have shown significant volatility. In 2013, the average rent was $650, which increased moderately to $688 by 2015. However, there was a sharp spike to $1,239 in 2018, followed by a decline to $945 in 2022. This volatility in rent prices, coupled with the area's relatively stable population (2,497 in 2022), suggests that local economic factors and housing supply changes may have influenced the rental market more than population shifts.
In 2023 and 2024, the housing market in zip code 67480 continued its upward trajectory. The average home price reached $170,194 in 2023 and further increased to $174,653 in 2024, representing a 5.5% growth over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or limited housing supply.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 67480 will likely continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $190,000 to $200,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict but may stabilize around $1,000 to $1,100 per month, assuming no significant local economic disruptions.
In summary, zip code 67480 has maintained a strong homeownership base despite rising home prices, with recent years showing resilience in the face of increasing interest rates. The rental market has been more volatile, potentially offering opportunities for both renters and investors. The continued rise in home values, even with higher interest rates, suggests a robust local housing market that may continue to favor homeownership in the coming years.
