Zip Code 72207: Rising Home Values and Ownership Trends in Little Rock's Dynamic Real Estate Market
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Property Value
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Percent Owner Occupied
Housing Prices
Median Rent
Population
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Zip code 72207, located in Little Rock, Arkansas, is a vibrant area spanning 4.0 square miles. This neighborhood has experienced notable fluctuations in homeownership rates and housing prices over the past decade, reflecting the dynamic nature of its real estate market.
From 2013 to 2022, the homeownership rate in zip code 72207 showed an overall increase, rising from 67% to 70%. This trend coincided with a significant appreciation in average home prices, which grew from $237,106 in 2013 to $355,792 in 2022, representing a 50% increase over the period. The year 2021 saw a particularly sharp rise in average home prices, jumping from $301,982 in 2020 to $324,969, a 7.6% increase in just one year.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.4%), homeownership rates remained relatively stable, fluctuating between 63% and 69%. However, as interest rates began to rise in 2022 to 1.68%, homeownership actually increased to 70%, suggesting that other local factors may have influenced buying decisions more strongly than interest rates alone.
Renter percentages in zip code 72207 have shown a slight overall decrease, from 32% in 2013 to 30% in 2022. Average rent prices, however, have experienced moderate growth, increasing from $1,114 in 2013 to $1,127 in 2022, a 1.2% rise. Notably, there was a peak in average rent prices in 2018 at $1,173, followed by a slight decline and stabilization. The population growth from 11,914 in 2013 to 12,621 in 2022 may have contributed to the overall upward pressure on rent prices, despite the slight decrease in the percentage of renters.
Looking at the most recent data, average home prices in zip code 72207 continued to rise, reaching $367,487 in 2023 and $382,658 in 2024. This represents a 7.6% increase from 2022 to 2024, indicating a sustained upward trend in property values. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and property demand.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 72207 will continue to appreciate, potentially reaching around $450,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. For average rent prices, a more moderate increase is expected, potentially reaching approximately $1,250 by 2029, assuming the current trends in population growth and housing demand persist.
In summary, zip code 72207 has demonstrated resilience and growth in its housing market. The area has seen a steady increase in homeownership rates alongside substantial appreciation in average home prices. While rent prices have shown more modest growth, the overall trend suggests a robust and desirable real estate market in this Little Rock neighborhood. The coming years are likely to see continued appreciation in property values, albeit potentially moderated by higher interest rates, while rent prices may experience steady but slower growth.
