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Zip Code 72753: Prairie Grove's Rising Home Values Amidst Shifting Ownership Trends
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 72753, located in Prairie Grove, Arkansas, has experienced significant changes in its housing market over the past decade. This area has seen a notable increase in population, rising from 7,722 in 2010 to 11,265 in 2022, which has undoubtedly influenced housing trends and ownership patterns.
The homeownership rate in Prairie Grove has shown a gradual decline over the years, while average home prices have consistently increased. In 2013, the homeownership rate was 78%, with an average home price of $126,795. By 2022, the homeownership rate had decreased to 72%, while the average home price had risen dramatically to $272,441. This inverse relationship suggests that as home prices increased, fewer residents were able to afford homeownership.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained steady at 77-78%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 72%. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Prairie Grove has shown interesting trends as well. In 2013, the renter-occupied percentage was 22%, with an average rent of $733. By 2022, the renter percentage had increased to 28%, with average rent reaching $806. The rise in the renter population coincides with the decrease in homeownership, suggesting that more residents are opting for or being pushed into renting as home prices escalate.
Looking at the most recent data, the average home price in 2023 was $284,267, and in 2024 it rose to $293,687. This continues the upward trend observed in previous years. Notably, interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may further impact homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Prairie Grove to continue rising, potentially reaching around $350,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,100 per month in the same timeframe. These projections are based on the consistent upward trends observed in both home prices and rent over the past decade.
In summary, Prairie Grove's housing market has been characterized by rising home prices, increasing rental rates, and a gradual shift from homeownership to renting. The inverse relationship between homeownership rates and home prices, coupled with the influence of interest rates, has shaped the local housing landscape. As the population continues to grow and housing costs rise, it will be crucial to monitor how these trends affect the community's housing accessibility and affordability in the coming years.
