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Zip Code 74857: Rising Home Values and Steady Ownership in Oklahoma City's Resilient Housing Market
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 74857, located in Oklahoma City, Oklahoma, presents an interesting case study of homeownership and housing market trends. This area has maintained a consistently high rate of homeownership over the past decade, with average home prices showing steady growth and average rent prices fluctuating.
The homeownership rate in zip code 74857 has remained remarkably stable, hovering around 90% from 2013 to 2022. This high rate of owner-occupied housing coincides with a general upward trend in average home prices. In 2013, the average home price was $147,844, which increased to $245,931 by 2022, representing a substantial 66.3% growth over this period. The most significant annual increase occurred between 2020 and 2021, with average home prices jumping from $196,852 to $218,294, a 10.9% rise in a single year.
Federal interest rates have played a role in shaping homeownership trends in this area. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to maintaining the high homeownership levels by making mortgages more affordable. For instance, in 2021, when the federal interest rate was at a mere 0.08%, the homeownership rate stood at 90%, and average home prices increased by 10.9% from the previous year.
Renter percentages in zip code 74857 have remained low, fluctuating between 7% and 11% from 2013 to 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $917, which increased to $989 in 2015, then decreased to $830 in 2018, before rising again to $968 in 2019. By 2022, the average rent had decreased to $870. These fluctuations in rent prices don't show a clear correlation with the slight changes in renter percentages, suggesting other factors may be influencing rental rates in this area.
Looking at the most recent data, average home prices in zip code 74857 continued to rise in 2023 and 2024, reaching $252,959 and $258,400 respectively. This represents a 2.9% increase from 2022 to 2023 and a further 2.2% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, albeit at a slower pace than in previous years.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 74857 to continue their upward trajectory, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $290,000 to $300,000 by 2029. Average rent prices may stabilize or show modest increases, potentially reaching $950 to $1,000 per month in the next five years, assuming economic conditions remain relatively stable.
In summary, zip code 74857 demonstrates a strong preference for homeownership, with consistently high owner-occupancy rates despite fluctuations in the housing market. The area has experienced significant appreciation in average home values over the past decade, even in the face of recent interest rate increases. While rental markets have shown some volatility, they represent a small portion of the housing landscape in this zip code. The continued rise in home prices, even with higher interest rates, suggests a robust demand for housing in this Oklahoma City neighborhood.
