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Zip Code 70002: Average Home Values and Ownership Trends in Metairie, Louisiana
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 70002, located in Metairie, Louisiana, has experienced significant changes in its real estate landscape over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 70002 has shown a slight decline over the years, with some fluctuations. In 2013, the homeownership rate was 53%, which remained relatively stable until 2017 when it dropped to 50%. However, by 2022, it had recovered slightly to 52%. This trend coincides with changes in average home prices. In 2013, the average home price was $237,535, which steadily increased to $372,591 by 2022, representing a 56.9% increase over this period. This substantial rise in home prices may have contributed to the slight decline in homeownership rates, as higher prices potentially made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 70002. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at around 51-53%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight decline in homeownership rates, dropping to 50% in 2017 and stabilizing at 52% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 70002 has also experienced notable changes. The percentage of renters increased from 45% in 2013 to 48% in 2022, indicating a growing preference or necessity for rental housing. This trend coincided with a significant increase in average rent prices. In 2013, the average rent was $968, which rose to $1,291 by 2022, representing a 33.4% increase. The population in the zip code also grew during this period, from 18,236 in 2013 to 18,954 in 2022, potentially contributing to increased demand for rental properties and subsequently higher rent prices.
Looking at the most recent data, the average home price in zip code 70002 for 2023 was $344,009, showing a decrease from the 2022 price of $372,591. This downward trend continued into 2024, with the average home price further dropping to $314,013. Interestingly, this decline in home prices occurred despite a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This inverse relationship between interest rates and home prices in the area suggests that other local or regional factors may be influencing the housing market more strongly than national interest rate trends.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 70002 may continue to experience some volatility but are likely to stabilize and potentially show modest growth. The recent decline in prices could make homeownership more accessible, potentially leading to a slight increase in homeownership rates. For rent prices, the trend suggests continued growth, albeit at a potentially slower rate than seen in previous years. We expect average rent prices to increase by approximately 2-3% annually over the next five years, reaching around $1,450-$1,500 by 2029.
In summary, zip code 70002 has experienced a complex interplay of factors affecting its real estate market. The slight decline in homeownership rates alongside rising home prices indicates potential affordability challenges. The rental market has seen steady growth in both demand and prices. Recent data showing a decline in home prices despite rising interest rates suggests unique local market conditions. Moving forward, we anticipate a period of stabilization in the housing market, with moderate growth in both home and rent prices.
