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Zip Code 72173: Rising Home Values and High Ownership Rates in Vilonia, Arkansas
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 72173, located in Vilonia, Arkansas, has experienced significant fluctuations in population and housing trends over the past decade. This area has shown resilience in maintaining a high percentage of homeownership while navigating changes in average home prices and rent costs.
The homeownership rate in zip code 72173 has remained consistently high, ranging from 82% to 88% between 2013 and 2022. This trend demonstrates a strong preference for homeownership in the area. Interestingly, the average home prices have shown a steady increase during this period. In 2013, the average home price was $154,368, which grew to $231,293 by 2022, representing a substantial 49.8% increase over nine years. This upward trend in home prices did not significantly deter homeownership, as the ownership rate actually increased from 83% in 2013 to 87% in 2022.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), the homeownership rate remained stable at around 83-85%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in the area actually increased slightly to 87%, suggesting other local factors may have influenced this trend.
Renter percentages in zip code 72173 have remained relatively low, fluctuating between 12% and 18% from 2013 to 2022. The average rent prices have shown some volatility during this period. In 2013, the average rent was $743, which peaked at $854 in 2015 before declining to $692 in 2022. This represents a 6.9% decrease in average rent from 2013 to 2022. Interestingly, the lower rent prices in recent years have not led to an increase in the renter population, as the percentage of renters decreased from 17% in 2013 to 13% in 2022.
Looking at the most recent data, the average home price in zip code 72173 continued its upward trajectory, reaching $240,855 in 2023 and further increasing to $247,307 in 2024. This represents a 6.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 72173 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $280,000 to $300,000. For average rent prices, the forecast suggests a potential stabilization or modest increase, with prices possibly ranging between $750 and $850 by 2029.
In summary, zip code 72173 has maintained a strong preference for homeownership despite rising home prices. The area has shown resilience in its housing market, with consistently high homeownership rates and relatively stable rent prices. The continued increase in average home prices, coupled with rising interest rates, may present challenges for future homebuyers, but the historical trends suggest that this community has a robust housing market that has adapted to various economic conditions.
