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Zip Code 72419: Rising Home Values and Stable Ownership in Caraway, 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 72419, located in Caraway, Arkansas, presents an interesting case study in housing trends over the past decade. This rural area has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic shifts and local demographic changes.
The ownership percentage in this zip code has shown resilience, maintaining a relatively stable range between 62% and 68% from 2013 to 2022. During this period, average home prices demonstrated a steady upward trajectory. In 2013, the average home price was $62,331, which increased to $97,092 by 2022, representing a significant 55.8% growth over nine years. This upward trend in home values occurred despite some population fluctuations, suggesting a robust local housing market.
Federal interest rates play a crucial role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership in zip code 72419 remained relatively stable, with a slight dip to 62% in 2015 and 2016. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership actually increased slightly to 65%, demonstrating the area's resilience to national economic factors.
Renter percentages in the zip code have fluctuated inversely to homeownership rates, ranging from 32% to 38% between 2013 and 2022. Interestingly, average rent prices have not shown a consistent correlation with these fluctuations. In 2013, the average rent was $559, which peaked at $575 in 2021 before slightly decreasing to $537 in 2022. This represents a modest overall increase of 3.9% in average rent over the decade, significantly lower than the growth in home prices.
Looking at the most recent data, 2023 saw a substantial jump in average home prices to $107,389, a 10.6% increase from 2022. This growth occurred despite a significant rise in federal interest rates to 5.02%. In 2024, there's a slight cooling in the housing market, with average home prices at $105,830, a 1.45% decrease from the previous year. This aligns with the further increase in federal interest rates to 5.33%, which typically dampens housing demand.
Applying predictive models to these trends, we can forecast continued but moderate growth in both home prices and rents over the next five years. Home prices are expected to stabilize and potentially see slower growth rates, especially if interest rates remain high. Rent prices may see more steady increases as the rental market often benefits from reduced homebuying activity in high-interest-rate environments.
In summary, zip code 72419 has demonstrated a resilient housing market with steady growth in home values and stable homeownership rates. The area has shown relative immunity to national interest rate fluctuations, maintaining a strong preference for homeownership. While rent prices have seen more modest growth, the overall trend suggests a balanced and gradually appreciating housing market in this Arkansas community.
