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Zip Code 76476: Rising Home Values and Ownership Rates in Tolar, 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 76476, encompassing Tolar in Texas, has witnessed significant changes in its housing market over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 76476 has shown an overall upward trend, increasing from 75% in 2013 to 85% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $188,131, and by 2022, it had risen to $364,549, representing a 93.8% increase over nine years. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 76476. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the initial rise in homeownership from 77% in 2013 to 82% in 2020. As interest rates began to increase more sharply in 2022 (1.68%) and 2023 (5.02%), homeownership continued to rise, reaching 85% in 2022, indicating a strong local housing market despite higher borrowing costs.
The rental market in zip code 76476 has experienced its own set of changes. The percentage of renters decreased from 25% in 2013 to 15% in 2022, inversely mirroring the rise in homeownership. Despite this decrease in the renter population, average rent prices have shown an upward trend. In 2013, the average rent was $917, which increased to $1,162 by 2022, representing a 26.7% increase. This rise in rent prices, despite a shrinking renter population, suggests a tightening rental market with potentially limited supply.
Looking at the most recent data, the average home price in zip code 76476 for 2023 was $356,159, showing a slight decrease from 2022's $364,549. The 2024 average home price stands at $356,117, indicating a stabilization in the market. This slight cooling in home prices coincides with higher interest rates, which reached 5.33% in 2024, potentially impacting buyer demand.
Applying predictive models to forecast 5-year trends, we anticipate a moderate growth in average home prices, likely reaching around $400,000 by 2029. This projection considers the recent stabilization and historical growth patterns. For average rent prices, we expect a continued upward trend, potentially reaching $1,350-$1,400 by 2029, reflecting the area's growing population and limited rental supply.
In summary, zip code 76476 has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The inverse relationship between homeownership and rental occupancy, coupled with rising rent prices, suggests a competitive housing environment. The recent stabilization in home prices and high interest rates may indicate a shift towards a more balanced market in the coming years.
