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Zip Code 76071: Stable Homeownership Amidst Rising Home Values in Pecan Acres, 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 76071, located in Pecan Acres, Texas, is a residential area characterized by a mix of homeowners and renters. This suburban community has experienced fluctuations in population and housing trends over the past decade, with homeownership rates remaining relatively stable while average home prices have shown significant growth.
The homeownership rate in zip code 76071 has remained consistently high, hovering around 77-80% between 2013 and 2022. Despite minor fluctuations, the overall trend indicates a strong preference for homeownership in this area. Concurrently, average home prices have seen a substantial increase. In 2010, the average home price was $149,932, which steadily rose to $334,963 by 2022, representing a remarkable 123% increase over 12 years. This upward trend in home prices, coupled with the stable homeownership rate, suggests a resilient real estate market in the area.
The relationship between federal interest rates and homeownership rates in zip code 76071 appears to follow general economic principles. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained high at 77% and 76%. This aligns with the notion that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in the area have remained relatively stable, ranging from 20% to 24% between 2013 and 2022. Interestingly, average rent prices have shown some volatility. In 2013, the average rent was $1,137, which decreased to $922 in 2017, before rising again to $986 in 2022. This fluctuation in rent prices, coupled with the area's population growth from 3,084 in 2010 to 3,418 in 2022, suggests a dynamic rental market responding to changing demand and economic conditions.
Looking at more recent data, the average home price in zip code 76071 slightly decreased from $334,963 in 2022 to $326,022 in 2023, showing a minor correction in the market. However, prices have stabilized in 2024 at $326,388, indicating a potential leveling off after years of growth. Notably, federal interest rates have risen significantly to 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 76071 will continue to grow, albeit at a more moderate pace. Given the historical trend and recent stabilization, we project average home prices could reach approximately $360,000 to $380,000 by 2029. For rent prices, considering the historical volatility and recent increases, we estimate they could range between $1,100 and $1,300 by 2029, assuming continued population growth and economic stability in the area.
In summary, zip code 76071 demonstrates a strong preference for homeownership, with consistently high rates despite significant increases in average home prices. The area has shown resilience in maintaining its homeownership levels even as prices have more than doubled over the past decade. The rental market, while smaller, has remained stable in terms of occupancy rates but has experienced more fluctuation in prices. Recent data suggests a potential stabilization in the housing market, but with rising interest rates, the area may face new challenges in maintaining its high homeownership rates in the coming years.
