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Zip Code 68938: Rising Home Values and Shifting Ownership in Rural 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 68938, located in Fairfield, Nebraska, presents an intriguing demographic landscape with significant shifts in homeownership and housing market dynamics over the past decade. This rural area has experienced a gradual decline in population, coupled with fluctuating homeownership rates and rising average home and rent prices.
The homeownership rate in zip code 68938 has shown a general upward trend from 2013 to 2022, albeit with some fluctuations. In 2013, the homeownership rate stood at 71%, rising steadily to peak at 90% in 2018. However, there has been a slight decline in recent years, with the rate settling at 80% in 2022. Concurrently, average home prices have shown a consistent upward trajectory. From 2016 to 2022, average home prices increased from $85,799 to $131,869, representing a substantial 53.7% growth over six years.
The relationship between federal interest rates and homeownership rates in this zip code reveals some interesting patterns. As interest rates remained low from 2013 to 2015 (around 0.1%), homeownership rates increased from 71% to 84%. The continuation of low interest rates through 2020 corresponded with homeownership rates remaining above 85%. However, as interest rates began to rise in 2022 to 1.68%, there was a slight decrease in homeownership to 80%, suggesting that higher interest rates may have impacted affordability and homeownership decisions.
Renter percentages in zip code 68938 have generally decreased as average rent prices increased. In 2013, renters made up 29% of the population, with an average rent of $515. By 2022, the renter percentage had dropped to 20%, while average rent rose to $658, a 27.8% increase over nine years. This trend suggests that rising rent prices may have encouraged some residents to transition to homeownership, especially given the relatively affordable home prices in the area.
Looking at the most recent data, average home prices in zip code 68938 continued to rise, reaching $140,573 in 2023 and $151,216 in 2024. This represents a 14.7% increase from 2022 to 2024. Notably, federal interest rates also climbed significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 68938 to continue their upward trajectory, potentially reaching around $180,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $750 per month within the same timeframe. These projections are based on the consistent growth patterns observed in recent years and assume relatively stable economic conditions.
In summary, zip code 68938 has experienced a notable increase in homeownership rates over the past decade, coupled with rising average home and rent prices. The inverse relationship between homeownership and renter percentages suggests a shift towards property ownership, possibly driven by the area's relatively affordable housing market. However, recent increases in federal interest rates and continued growth in housing prices may present challenges for future homebuyers in this rural Nebraska community.
