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Zip Code 73644: Rising Home Values and Ownership Rates in Elk City's Oil and Gas Hub
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
Elk City, located in zip code 73644 in Oklahoma, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis explores the relationship between ownership percentages, average home prices, and average rent prices in this area.
The homeownership rate in Elk City has shown a general upward trend, increasing from 61% in 2013 to 66% in 2022. This rise in homeownership coincided with significant changes in average home prices. In 2013, the average home price was $127,714, which increased to $144,921 by 2022, representing a 13.5% growth over this period. However, this growth was not linear, with fluctuations observed throughout the years.
Federal interest rates appear to have influenced homeownership rates in Elk City. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership increased from 61% to 64%. This trend aligns with the general principle that lower interest rates make home financing more accessible, potentially encouraging more people to buy homes.
Conversely, the percentage of renters in Elk City decreased from 38% in 2013 to 34% in 2022. Interestingly, average rent prices showed considerable volatility during this period. In 2013, the average rent was $818, which peaked at $916 in 2018 before declining to $776 in 2022. This represents a 5.1% decrease in average rent from 2013 to 2022, despite the overall increase in home prices. The fluctuation in rent prices could be attributed to changes in local economic conditions and housing supply.
Looking at more recent data, the average home price in Elk City continued to rise, reaching $148,549 in 2023 and $152,754 in 2024. This represents a 5.4% increase from 2022 to 2024. Notably, federal interest rates also increased significantly during this period, rising from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. Despite these higher interest rates, home prices continued to appreciate, suggesting strong demand or limited housing supply in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Elk City will continue to rise, potentially reaching around $170,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For rent prices, the forecast suggests a potential stabilization or modest increase, possibly reaching an average of $800-$850 per month by 2029, considering the historical volatility and recent trends.
In summary, Elk City's housing market has demonstrated resilience and growth over the past decade. The increase in homeownership rates, coupled with rising average home prices, suggests a strong demand for housing in the area. While rent prices have shown more volatility, the overall trend points towards a stabilizing rental market. The continued appreciation of home values, even in the face of rising interest rates, indicates a robust local housing market with potential for further growth in the coming years.
