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Zip Code 73072: Shifting Homeownership and Rising Home Values in Norman, Oklahoma
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 73072, located in Norman, Oklahoma, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable shift in homeownership rates and fluctuations in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 73072 has shown a consistent downward trend from 2013 to 2022. In 2013, 60% of housing units were owner-occupied, but by 2022, this figure had decreased to 53%. Conversely, the average home prices in the area have seen substantial growth. In 2013, the average home price was $193,899, which increased to $288,002 by 2022, representing a 48.5% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 73072. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, fluctuating between 58% and 60%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline more rapidly, dropping from 59% in 2017 to 56% in 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in zip code 73072 increased correspondingly. The renter-occupied housing units rose from 39% in 2013 to 47% in 2022. Interestingly, average rent prices have not shown a consistent upward trend despite the increased demand for rentals. In 2013, the average rent was $1,006, which peaked at $1,084 in 2021 before decreasing to $985 in 2022. This fluctuation in rent prices, despite the growing renter population, could be attributed to various factors, including new rental inventory entering the market or economic pressures affecting rental rates.
In 2023 and 2024, the housing market in zip code 73072 continued to evolve. The average home price reached $302,505 in 2023 and further increased to $305,061 in 2024, showing a continued upward trend in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 73072 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize and potentially increase moderately as the rental market adjusts to changing demand and economic conditions.
In summary, zip code 73072 has experienced a clear shift from homeownership to renting over the past decade, accompanied by significant increases in average home prices. The interplay between federal interest rates, housing affordability, and rental demand has shaped these trends. As the area continues to evolve, balancing housing affordability with property value growth will likely be a key challenge for the local real estate market.
