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Zip Code 68059: Springfield's Resilient Housing Market Sees Significant Growth in Home Values and Rent Prices
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
Springfield, Nebraska, located in zip code 68059, has experienced notable shifts in its housing market over the past decade. This suburban area, covering 49.22 square miles, has seen significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local demographic shifts.
The homeownership rate in Springfield has remained relatively stable, with a slight decrease over time. In 2013, the homeownership rate was 90%, which gradually decreased to 88% by 2022. This minor decline coincides with a substantial increase in average home prices. In 2013, the average home price was $225,369, which rose steadily to reach $408,478 by 2022, representing an impressive 81.2% increase over nine years. This trend suggests that while home values have appreciated significantly, it has not dramatically affected the overall rate of homeownership in the area.
Federal interest rates have played a role in shaping homeownership trends in Springfield. From 2013 to 2016, interest rates remained historically low, ranging from 0.11% to 0.40%. During this period, homeownership rates held steady at 91%, likely due to favorable borrowing conditions. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership to 88%. This pattern aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter occupancy in Springfield has shown a modest increase, rising from 9% in 2013 to 12% in 2022. This shift corresponds with a significant increase in average rent prices. In 2013, the average rent was $806, which climbed to $1,059 by 2022, representing a 31.4% increase. The population of Springfield also grew during this period, from 3,413 in 2013 to 3,938 in 2022, potentially contributing to increased demand for rental properties and subsequent rent price increases.
In 2023 and 2024, the housing market in Springfield continued its upward trajectory. The average home price reached $426,416 in 2023 and further increased to $439,334 in 2024, marking a 7.6% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that the housing market in Springfield will likely continue its upward trend, albeit at a potentially slower pace. Average home prices are projected to increase by approximately 3-5% annually over the next five years, potentially reaching around $510,000 by 2029. Average rent prices are expected to follow a similar trajectory, with annual increases of 2-4%, potentially reaching approximately $1,250 by 2029.
In summary, Springfield has experienced a robust housing market over the past decade, characterized by significant appreciation in home values and rent prices. While homeownership rates have slightly decreased, they remain high at 88%. The area has shown resilience in the face of rising interest rates, with continued growth in both population and housing prices. These trends suggest a strong, desirable housing market in zip code 68059, with potential for continued growth in the coming years.
