Loading Content...
Zip Code 71913: Rising Home Values and Stable Ownership in Hot Springs' Historic Bathhouse District
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 71913 encompasses Hot Springs, Arkansas, a renowned spa town known for its natural thermal springs. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increasing average home values and relatively stable ownership percentages.
The homeownership rate in zip code 71913 has remained relatively steady, hovering around 64% from 2013 to 2022. Despite this stability, average home prices have shown a significant upward trend. In 2013, the average home price was $141,479, which steadily increased to $246,919 by 2022, representing a substantial 74.5% increase over this period. This trend suggests that while the proportion of homeowners has remained consistent, the value of owned properties has appreciated considerably.
Federal interest rates have played a role in shaping homeownership trends in the area. During periods of lower interest rates, such as from 2013 to 2016 when rates were below 0.5%, homeownership rates remained stable at around 63-64%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed resilience, maintaining at 64%. This stability in homeownership despite rising interest rates may indicate strong local market factors and demand for housing in Hot Springs.
The rental market in zip code 71913 has shown interesting trends in relation to average rent prices and renter percentages. The percentage of renters has fluctuated slightly, ranging from 34% to 36% between 2013 and 2022. Average rent prices have generally increased over this period, rising from $812 in 2013 to $849 in 2022, with some fluctuations in between. Notably, there was a peak in average rent at $932 in 2021, coinciding with a slight increase in the renter percentage to 36%. This peak may have been influenced by the growing population, which reached 47,069 in 2021, potentially increasing demand for rental properties.
In 2023 and 2024, the housing market in zip code 71913 continued its upward trajectory. The average home price rose to $256,597 in 2023 and further increased to $263,618 in 2024. This represents a 6.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, 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.
Looking ahead, predictive models suggest that average home prices in zip code 71913 are likely to continue their upward trend over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and housing demand. However, the rate of increase may be moderated by the overall economic conditions and local market factors.
In summary, zip code 71913 has demonstrated a robust housing market with steadily increasing average home values and relatively stable homeownership rates. The rental market has shown resilience with slight fluctuations in both renter percentages and average rent prices. The recent sharp increase in interest rates, coupled with continuing home price appreciation, may present new dynamics in the local housing market in the coming years.
