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Zip Code 75204: Rising Home Values and Low Ownership Rates in Urban Dallas
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 75204, situated in Dallas, Texas, has undergone notable demographic and real estate shifts over the past decade. This urban area has experienced a consistent increase in population density, accompanied by fluctuations in homeownership rates and a steady rise in both average home prices and average rent prices.
The homeownership rate in zip code 75204 has remained relatively stable, with minor fluctuations between 18% and 22% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic upward trend. In 2010, the average home price was $228,603, which more than doubled to $489,454 by 2022. This substantial increase in average home prices, coupled with the relatively stable homeownership rate, indicates that while property values are appreciating, it hasn't significantly impacted the proportion of homeowners in the area.
Federal interest rates have influenced homeownership trends, although the impact appears less pronounced in this zip code compared to national trends. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in 75204 remained steady at 19%. This suggests that other factors, such as local market conditions or demographics, may have a stronger influence on homeownership in this area than interest rates alone.
The renter population in zip code 75204 has consistently comprised the majority, ranging from 78% to 81% between 2013 and 2022. This high percentage of renters aligns with the urban nature of the area. Average rent prices have shown a steady increase, rising from $1,221 in 2013 to $1,488 in 2022, a 22% increase over nine years. The population growth from 27,144 in 2013 to 31,773 in 2022 likely contributed to the demand for rental properties and the subsequent rise in average rent prices.
In 2023, the average home price in zip code 75204 reached $502,255, continuing the upward trend. This increase occurred despite the federal interest rate rising to 5.02% in 2023. Moving into 2024, the average home price further increased to $515,943, with the federal interest rate slightly higher at 5.33%. These figures demonstrate the resilience of the local real estate market in the face of rising interest rates.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and average rent prices over the next five years. Average home prices could potentially reach around $600,000 by 2029, assuming a similar growth rate to recent years. Average rent prices may increase to approximately $1,700 per month in the same timeframe, factoring in the steady population growth and high demand for rental properties in the area.
In summary, zip code 75204 presents a dynamic real estate market characterized by rapidly appreciating property values, a predominantly renter-occupied population, and steadily increasing average rent prices. The area's ability to maintain high property values and rent prices, even in the face of rising interest rates, suggests a strong and desirable local market. The continued population growth and urban development in this Dallas zip code are likely to sustain these trends in the coming years.
