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Zip Code 76207: Rising Home Values and Stable Ownership in Denton, 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 76207, located in Denton, Texas, has experienced significant growth and changes in its housing market over the past decade. This area has seen a notable increase in population density and fluctuations in homeownership rates, accompanied by rising average home prices and rent costs.
The homeownership rate in zip code 76207 has shown some variability over the years, with a slight overall decline from 64% in 2020 to 59% in 2022. During this same period, average home prices have seen a substantial increase. In 2013, the average home price was $181,008, which rose steadily to $267,414 in 2019. The market then experienced a dramatic surge, with average home prices reaching $386,185 in 2022, representing a 113% increase from 2013 to 2022.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with relatively stable homeownership rates, fluctuating between 59% and 64%. However, as interest rates began to rise more sharply in 2022 to 1.68%, we observed a slight decrease in homeownership to 59%, suggesting that higher borrowing costs may have impacted some residents' ability or willingness to purchase homes.
The rental market in zip code 76207 has also seen significant changes. The percentage of renters increased from 36% in 2020 to 41% in 2022. Correspondingly, average rent prices have risen from $1,348 in 2013 to $1,506 in 2022, a 12% increase. This trend aligns with the growing population, which increased from 11,837 in 2013 to 17,757 in 2022, potentially driving up demand for rental properties.
Looking at the most recent data, the average home price in 2023 was $380,292, showing a slight decrease from 2022. In 2024, the average home price further decreased to $376,110. Interestingly, this decline in home prices coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the housing market.
Based on the observed trends and current economic conditions, we can project potential scenarios for the next five years. Average home prices may experience a period of stabilization or modest growth, potentially reaching around $400,000 by 2029. Rent prices could continue to increase, albeit at a slower rate, potentially reaching an average of $1,700 to $1,800 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 76207 has witnessed a dynamic housing market over the past decade. The area has experienced significant population growth, rising home prices, and increasing rent costs. While homeownership rates have slightly declined in recent years, the rental market has expanded. The interplay between federal interest rates, population growth, and housing demand continues to shape the local real estate landscape, presenting both challenges and opportunities for residents and investors alike.
