The relationship between federal interest rates and homeownership rates in zip code 75137 shows some correlation. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with relatively stable homeownership rates. However, as interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, there was a slight decrease in homeownership rates. Interestingly, the sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) corresponded with an increase in homeownership back to 70%.

Renter percentages in zip code 75137 have shown a slight increase over time, moving from 30% in 2013 to 34% by 2019, before returning to 30% in 2021 and 32% in 2022. This trend has been accompanied by a steady rise in average rent prices. In 2013, the average rent was $1,249, which increased to $1,457 by 2019, a 16.7% rise. The upward trend continued, with average rent reaching $1,502 in 2022, representing a 20.3% increase from 2013 to 2022. The rise in rent prices, coupled with the increase in renter percentages until 2019, suggests a growing demand for rental properties in the area.

In 2023 and 2024, the real estate market in zip code 75137 has continued to evolve. The average home price in 2023 was $290,016, showing a slight increase from 2022. In 2024, it further rose to $294,283, indicating a continued, albeit slower, appreciation of property values. Notably, federal interest rates have significantly increased during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the area.

Looking ahead, based on the historical data and current trends, we can project some potential scenarios for the next five years. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might see average home prices reaching around $320,000 to $350,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,700 to $1,800 per month by 2029, assuming a similar growth rate to recent years.

In summary, zip code 75137 has demonstrated a robust and dynamic real estate market over the past decade. The area has maintained relatively stable homeownership rates despite significant increases in average home prices, indicating strong local demand and economic conditions. The rental market has also shown steady growth, with increasing average rents and a slight uptick in renter percentages. The recent rise in interest rates and the continued appreciation of home values will likely shape the market's future, potentially moderating price growth but maintaining the area's attractiveness for both homeowners and renters.