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Zip Code 75028: Flower Mound's Shifting Home Values and Ownership Trends
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 75028, located in Flower Mound, Texas, has experienced significant changes in its housing market over the past decade. This area has seen a general trend of increasing average home prices and average rent prices, alongside fluctuations in homeownership rates. The community has maintained a predominantly owner-occupied housing market, with a gradual shift towards more renters in recent years.
The homeownership rate in zip code 75028 has shown a slight decline from 2013 to 2022. In 2013, 87% of housing units were owner-occupied, while by 2022, this figure had decreased to 80%. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $246,528, and by 2022, it had risen to $523,189, representing a 112% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in zip code 75028. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 84-87%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options, while higher rates can make mortgages less accessible.
The percentage of renters in zip code 75028 has increased from 12% in 2013 to 20% in 2022. Correspondingly, average rent prices have also risen, from $1,768 in 2013 to $2,004 in 2022, an increase of about 13.3% over nine years. This growth in both renter population and rent prices could be attributed to various factors, including the area's population growth from 43,403 in 2013 to 47,401 in 2022, which may have increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 75028 continued to evolve. The average home price in 2023 was $537,510, showing a further increase from 2022. In 2024, the average home price reached $547,162, indicating a continued upward trend in property values. Notably, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. Average home prices in zip code 75028 may continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $600,000 to $650,000. Average rent prices might also continue their upward trajectory, potentially reaching around $2,300 to $2,500 per month by 2029. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 75028 has experienced a notable increase in both average home prices and average rent prices over the past decade, coupled with a gradual shift towards more renters. The interplay between federal interest rates, housing affordability, and population growth has significantly influenced these trends. As the area continues to develop, it will be crucial to monitor how these factors shape the future of the local housing market.
