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Zip Code 76539: Rising Home Values and Ownership Rates in Kempner, 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 76539, located in Kempner, Texas, has experienced significant changes in homeownership, average home prices, and average rent prices over the past decade. This area, covering 139.69 square miles, has seen a general trend of increasing homeownership and rising property values, with some fluctuations in the rental market.
The homeownership rate in zip code 76539 has shown a notable increase from 82% in 2017 to 90% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2017, the average home price was $197,330, which steadily climbed to $351,700 by 2022, representing a remarkable 78% increase over five years. This strong correlation between rising homeownership rates and increasing home values suggests a growing demand for property ownership in the area.
Federal interest rates have played a significant role in homeownership trends. From 2017 to 2019, as interest rates rose from 1% to 2.16%, homeownership remained relatively stable around 82-84%. However, when interest rates dropped sharply to 0.38% in 2020, homeownership surged to 91%. This inverse relationship continued as interest rates remained low (0.08%) in 2021, maintaining high homeownership at 89%. The slight decrease in homeownership to 90% in 2022, despite rising interest rates to 1.68%, suggests a lag effect in the market's response to interest rate changes.
The renter population in zip code 76539 has experienced a corresponding decline as homeownership increased. The percentage of renters decreased from 15% in 2017 to 10% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2017, the average rent was $1,092, which decreased to $984 in 2020 before rising sharply to $1,175 in 2021, and then falling again to $989 in 2022. This fluctuation in rent prices, despite a decreasing renter population, may indicate other factors at play, such as changes in housing quality or local economic conditions.
Looking at the most recent data, the average home price in zip code 76539 reached $353,991 in 2023, showing a slight increase from 2022. However, in 2024, there was a minor decrease to $352,920. This slight dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on home price appreciation in the area.
Applying predictive models to forecast trends for the next five years, we can anticipate continued but potentially slower growth in average home prices. The recent stabilization in prices, coupled with high interest rates, suggests a more moderate appreciation rate of 2-3% annually. For rent prices, the forecast indicates a potential increase, possibly reaching an average of $1,100-$1,200 per month by 2029, assuming economic conditions remain stable and the area continues to attract residents.
In summary, zip code 76539 has demonstrated a strong trend towards homeownership, with significant appreciation in property values over the past decade. The inverse relationship between federal interest rates and homeownership rates has been evident, particularly during periods of low interest rates. While the rental market has shown some volatility, the overall decrease in the renter population suggests a shift towards a more owner-occupied community. The recent stabilization in home prices and increase in interest rates indicate a potential moderation in the housing market, but long-term growth trends remain positive for this Texas zip code.
