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Zip Code 68505: Rising Home Values and Shifting Ownership in Lincoln, Nebraska
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 68505, located in Lincoln, Nebraska, has experienced significant changes in homeownership, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, alongside fluctuations in property values and rental costs.
The ownership percentage in zip code 68505 has shown a slight downward trend from 2013 to 2022. In 2013, the homeownership rate was 64%, which remained relatively stable until 2019. However, there was a notable decrease to 58% in 2020 and 2021, before slightly recovering to 59% in 2022. This trend coincides with a substantial increase in average home prices. The average home price in the area rose from $128,178 in 2013 to $230,569 in 2022, representing a remarkable 80% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period from 2013 to 2019, when interest rates were relatively low (ranging from 0.09% to 2.16%), saw stable homeownership rates around 61-64%. However, the sharp drop in homeownership to 58% in 2020 coincided with a significant decrease in interest rates to 0.38%, possibly indicating other economic factors at play.
Renter percentages in zip code 68505 have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 36% in 2013 to 42% in 2021, before slightly decreasing to 41% in 2022. Average rent prices have shown overall growth, albeit with some fluctuations. The average rent rose from $961 in 2013 to $1,089 in 2021, representing a 13.3% increase. However, there was a slight decrease to $1,005 in 2022. The population growth from 16,081 in 2013 to 18,548 in 2022 may have contributed to the upward pressure on rent prices.
In 2023 and 2024, the average home prices in zip code 68505 continued to rise, reaching $242,482 in 2023 and $249,133 in 2024. This represents a further increase of 5.2% and 2.7% respectively from the 2022 average. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on the historical trends and current economic conditions, we can project the following 5-year trends for zip code 68505:
Average home prices are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach around $280,000 to $300,000 by 2029.
Average rent prices may also continue to rise, possibly reaching $1,200 to $1,300 per month by 2029, assuming steady population growth and demand for rental properties.
In summary, zip code 68505 has experienced a gradual shift towards renting, with homeownership rates decreasing slightly over the past decade. This trend has occurred alongside substantial increases in average home prices and moderate growth in average rent prices. The area has shown resilience in terms of property values, with consistent growth even in the face of economic fluctuations and changing interest rates. As the population continues to grow and economic factors evolve, it will be crucial to monitor how these trends develop in the coming years.
