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Zip Code 67838: Rising Home Values and Ownership Trends in Deerfield, 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 67838, located in Deerfield, Kansas, has experienced notable shifts in its housing market over the past decade. This rural area, spanning 216.95 square miles, has seen fluctuations in homeownership rates and property values, reflecting broader economic trends and local demographic changes.
The homeownership rate in zip code 67838 has shown a general upward trend from 2013 to 2020, with some fluctuations in recent years. In 2013, the homeownership rate was 77%, which increased to a peak of 86% in 2019. This rise coincided with a steady increase in average home prices. From 2016 to 2022, average home prices in the area rose from $91,158 to $143,931, representing a significant 57.9% increase over six years. This trend suggests a growing interest in homeownership, potentially driven by the area's affordability compared to urban markets.
The relationship between federal interest rates and homeownership rates in zip code 67838 appears to follow the general economic principle that lower interest rates encourage homeownership. For instance, as interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates in the area increased from 77% to 85%. This period of low interest rates likely made mortgages more affordable, encouraging more residents to purchase homes.
Renter percentages in zip code 67838 have generally decreased as homeownership rates increased. In 2013, renters occupied 23% of housing units, which decreased to 14% by 2019. However, there was a slight uptick in renter occupancy to 22% in 2022. Average rent prices have shown volatility, with significant fluctuations over the years. For example, the average rent increased from $859 in 2013 to a peak of $1,163 in 2021, before dropping to $827 in 2022. These fluctuations in rent prices and occupancy rates may be influenced by changes in the local economy and population dynamics, with the area's population growing from 765 in 2013 to 878 in 2022.
In 2023 and 2024, average home prices in zip code 67838 continued to rise, reaching $148,692 in 2023 and $149,781 in 2024. This represents a modest 0.73% increase from 2023 to 2024, suggesting a slowdown in price growth compared to previous years. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on historical trends and current economic conditions, we can project potential scenarios for the next five years. Average home prices in zip code 67838 may continue to increase, but at a more moderate pace, potentially reaching around $160,000 by 2029. Rent prices, which have shown volatility, might stabilize and gradually increase to approximately $1,000 per month over the same period. However, these projections are subject to various factors, including economic conditions, population changes, and local development initiatives.
In summary, zip code 67838 has experienced a notable increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in renter occupancy. The area has shown resilience in its housing market, with consistent growth in property values. Recent increases in interest rates and a slowing of home price appreciation suggest a potential shift in market dynamics, which may influence future homeownership trends and property values in this Kansas community.
