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Zip Code 75605: Rising Home Values and Shifting Ownership in Longview, 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 75605, located in Longview, Texas, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 75605 has shown a declining trend since 2013. In 2013, the area had a 64% homeownership rate, which steadily decreased to 55% by 2022. This 9 percentage point drop in homeownership coincided with a considerable increase in average home prices. In 2013, the average home price was $180,989, which rose to $269,486 by 2022, representing a 48.9% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, which typically encourages homeownership due to more affordable financing. However, despite these low rates, homeownership in zip code 75605 continued to decline. This suggests that other factors, such as rapidly increasing home prices, may have outweighed the benefits of low interest rates for potential homebuyers in this area.
As homeownership rates declined, the percentage of renters in zip code 75605 increased from 36% in 2013 to 45% in 2022. This 9 percentage point increase in renters was accompanied by a rise in average rent prices. In 2013, the average rent was $1,130, which increased to $1,229 by 2022, representing an 8.8% increase. The population of the zip code also grew during this period, from 28,698 in 2013 to 33,674 in 2022, potentially contributing to increased demand for rental properties and higher rent prices.
In 2023 and 2024, the housing market in zip code 75605 continued to evolve. The average home price reached $280,910 in 2023 and further increased to $283,576 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 75605 will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall demand for housing in the area. However, the rate of increase for both home prices and rents may moderate if population growth slows or if new housing supply enters the market.
In summary, zip code 75605 has experienced a significant shift from homeownership to renting, with rising home prices potentially contributing to this trend. The area has seen substantial appreciation in property values and a steady increase in rent prices. These changes, coupled with population growth and fluctuating interest rates, have reshaped the local housing market. As we move forward, the interplay between these factors will continue to influence housing affordability and accessibility in this Longview, Texas community.
