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Zip Code 74012: Rising Home Values and Shifting Ownership in Broken Arrow, 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 74012, located in Broken Arrow, Oklahoma, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in housing dynamics, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 74012 has shown a slight downward trend from 2013 to 2022. In 2013, 74% of housing units were owner-occupied, while by 2022, this figure had decreased to 69%. Concurrently, average home prices in the area have seen substantial growth. In 2013, the average home price was $144,523, which steadily increased to $241,188 by 2022, representing a 66.9% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 74012. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 74% to 68%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight decrease in homeownership rates, settling at 69% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 74012 has seen a corresponding increase as homeownership rates declined. The percentage of renter-occupied housing units rose from 26% in 2013 to 31% in 2022. This shift coincided with an increase in average rent prices. In 2013, the average rent was $1,203, which grew to $1,270 by 2022, an increase of 5.6%. The population of the zip code also grew during this period, from 58,647 in 2013 to 62,582 in 2022, potentially contributing to increased demand for rental properties and subsequent rent price increases.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 74012. The average home price reached $252,264 in 2023 and further increased to $257,403 in 2024. This represents a 6.7% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the area.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices for zip code 74012 over the next five years. Average home prices are expected to increase by approximately 3-5% annually, potentially reaching around $300,000 by 2029. Average rent prices are likely to follow a similar trajectory, with projected annual increases of 2-4%, potentially reaching $1,450-$1,500 by 2029.
In summary, zip code 74012 has experienced a gradual shift towards more renter-occupied housing units, coinciding with significant increases in average home prices. The interplay between federal interest rates, population growth, and housing market dynamics has shaped these trends. As average home and rent prices continue to rise, it will be crucial to monitor how these changes affect the area's demographics and housing accessibility in the coming years.
