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Zip Code 75287: Rising Home Values and Shifting Ownership in 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 75287, located in Dallas, Texas, presents an intriguing case study of real estate dynamics in a rapidly growing urban area. This zip code has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The area has seen a general trend of decreasing homeownership, rising average home prices, and increasing average rent prices.
The homeownership rate in zip code 75287 has shown a gradual decline from 2013 to 2019, followed by a slight increase in recent years. In 2013, the homeownership rate stood at 21%, remaining stable until 2015. From 2016 to 2019, it decreased to 20%. However, there was a notable uptick in 2020, with the homeownership rate rising to 22%, and further increasing to 23% by 2022. This recent increase in homeownership coincides with a significant rise in average home prices. The average home price in the area has more than doubled from $210,794 in 2010 to $452,751 in 2022, representing a 114.8% increase over 12 years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), the homeownership rate remained stable at 21%. As interest rates began to rise from 2016 to 2019 (0.4% to 2.16%), the homeownership rate dropped to 20%. Interestingly, despite the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate increased to 22%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have influenced homeownership trends in this area.
The rental market in zip code 75287 has shown a consistent upward trend in both renter percentages and average rent prices. The percentage of renters increased from 78% in 2013 to 79% from 2016 to 2020, before slightly decreasing to 77% in 2022. Correspondingly, the average rent price has risen steadily from $967 in 2013 to $1,244 in 2022, an increase of 28.6% over nine years. This trend aligns with the growing population in the area, which increased from 49,026 in 2010 to 52,848 in 2022, potentially driving up demand for rental properties.
Looking at the most recent data, the average home price in zip code 75287 continued to rise, reaching $467,376 in 2023 and $478,201 in 2024. This represents a 3.2% increase from 2022 to 2023 and a further 2.3% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 75287 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, the average home price could reach approximately $550,000 to $600,000. For average rent prices, the upward trend is expected to persist, potentially reaching $1,500 to $1,600 per month by 2029, driven by population growth and increasing property values.
In summary, zip code 75287 has demonstrated a complex interplay between homeownership rates, average home prices, and rental market dynamics. The area has seen a substantial increase in property values, a recent uptick in homeownership after years of decline, and a consistently strong rental market. These trends reflect the area's growing desirability and the broader economic forces shaping the Dallas real estate market.
