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Zip Code 73838: Chester's Rising Home Values and Ownership Rates
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
Chester, Oklahoma, zip code 73838, is a small rural community that has experienced significant fluctuations in population and housing dynamics over the past decade. The area has seen a general trend of increasing homeownership rates and rising average home prices, while average rent prices have shown more volatility.
The homeownership rate in Chester has shown a notable upward trend, particularly in recent years. In 2013, the homeownership rate was 81%, and by 2022, it had increased to 89%. This 8 percentage point increase coincides with a substantial rise in average home prices. In 2013, the average home price was $120,797, and by 2022, it had nearly doubled to $231,572. This positive correlation suggests that as home values increased, more residents were motivated to become homeowners, possibly viewing real estate as a sound investment.
Federal interest rates have played a significant role in shaping homeownership trends in Chester. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 1.83%. These low rates likely contributed to the increase in homeownership, as they made mortgages more affordable for potential buyers. The sharp rise in homeownership from 82% in 2020 to 88% in 2021 coincides with the lowest interest rate of 0.08% in 2021, further supporting this relationship.
Renter percentages in Chester have generally declined as homeownership increased. In 2013, the renter-occupied rate was 19%, and by 2022, it had decreased to 11%. Interestingly, average rent prices have shown significant volatility during this period. For example, the average rent dropped from $574 in 2016 to $237 in 2017, before sharply increasing to $674 in 2018. This volatility may be attributed to the small population size, where individual rental property changes can have a large impact on overall averages. The population growth from 411 in 2015 to 623 in 2022 may have also influenced rental market dynamics.
Looking at the most recent data, the average home price in Chester continued to rise, reaching $235,674 in 2023 and $238,262 in 2024. This represents a modest increase of 1.1% from 2023 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which could potentially slow down the rate of home price appreciation and homeownership growth in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Chester will continue to rise, albeit at a slower pace due to higher interest rates. We project average home prices could reach approximately $260,000 to $275,000 by 2029. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching $500 to $550 per month, assuming continued population growth and demand for rental properties.
In summary, Chester has experienced a significant increase in homeownership rates and average home prices over the past decade, likely driven by low interest rates and perceived investment opportunities. The rental market has shown volatility, possibly due to the small population size. Recent interest rate hikes may moderate future home price growth and could potentially reverse the trend of increasing homeownership rates if sustained over the long term.
