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Zip Code 75070: Rising Home Values and Shifting Ownership in McKinney, Texas
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 75070, located in McKinney, Texas, has experienced significant demographic and real estate changes over the past decade. This area has seen a notable shift in homeownership rates and fluctuations in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership percentage in zip code 75070 has shown a gradual decline from 2013 to 2022. In 2013, the area had a 68% homeownership rate, which decreased to 55% by 2022. This downward trend in homeownership coincides with a substantial increase in average home prices. The average home price in the area rose from $202,450 in 2010 to $506,282 in 2022, representing a remarkable 150% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2010 and 2015 (ranging from 0.1% to 0.18%), the homeownership rate remained relatively high, above 60%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, the homeownership rate declined to 55%. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in zip code 75070 has steadily increased from 30% in 2013 to 45% in 2022. This rise in the renter population correlates with an overall increase in average rent prices, albeit with some fluctuations. The average rent price grew from $1,787 in 2013 to $1,701 in 2022, peaking at $1,812 in 2019. It's worth noting that the renter population growth outpaced the increase in rent prices, suggesting that despite the rising costs, renting remained an attractive or necessary option for many residents.
Looking at the most recent data, the average home price in zip code 75070 reached $507,190 in 2023 and further increased to $517,680 in 2024. This continued upward trend in home prices occurs alongside a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with elevated home prices, may further impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 75070 will continue to rise, potentially reaching around $600,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,900 by 2029, reflecting the area's growing population and demand for rental properties.
In summary, zip code 75070 has experienced a significant shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen substantial population growth, which has likely contributed to the rising demand for both owned and rented properties. As home prices continue to climb and interest rates remain high, the trend towards renting may persist in the near future, potentially stabilizing the rental market while putting pressure on homeownership rates.
