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Zip Code 77401: Rising Home Values and Stable Ownership in Bellaire, 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 77401, located in Bellaire, Texas, is a vibrant suburban area known for its high-quality schools and proximity to Houston. This zip code has experienced notable shifts in homeownership rates and property values over the past decade. The overall trend shows a slight decrease in homeownership, while average home prices and average rent have generally increased.
The homeownership rate in zip code 77401 has shown minor fluctuations over the years, with a slight downward trend. In 2013, the homeownership rate was 86%, which remained relatively stable until 2020. However, by 2022, it had decreased to 83%. This decline in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $726,171, which rose steadily to $975,172 by 2022, representing a 34.3% increase over this period. This substantial growth in home values may have contributed to the slight decrease in homeownership, as higher prices could have made purchasing a home more challenging for some residents.
Federal interest rates have played a role in homeownership trends in zip code 77401. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which corresponded with stable homeownership rates around 85-86%. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), we observed a slight dip in homeownership to 84%. The ultra-low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a brief increase in homeownership back to 86%. However, as rates sharply increased to 1.68% in 2022, homeownership declined to 83%, illustrating the inverse relationship between interest rates and homeownership.
The renter population in zip code 77401 has shown a corresponding increase as homeownership rates declined. In 2013, the renter-occupied rate was 13%, which increased to 17% by 2022. This rise in renters has been accompanied by an increase in average rent prices. The average rent in 2013 was $1,800, which grew to $2,161 by 2022, representing a 20.1% increase. The population of the zip code also grew during this period, from 17,474 in 2013 to 17,476 in 2022, potentially contributing to the demand for rental properties and the subsequent rise in rent prices.
As of 2024, the average home price in zip code 77401 has reached $1,065,395, a significant increase from $1,023,933 in 2023. This represents a 4.1% year-over-year increase. Concurrently, the federal interest rate has risen to 5.33% in 2024, up from 5.02% in 2023, indicating a tightening monetary policy environment.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 77401 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach approximately $1,200,000 by 2029. Average rent prices are also likely to increase, potentially reaching around $2,500 by 2029, driven by ongoing demand for rental properties in this desirable area.
In summary, zip code 77401 has experienced a slight decrease in homeownership rates over the past decade, coinciding with substantial increases in average home prices and average rent. The interplay between federal interest rates, property values, and housing affordability has shaped these trends. As we move forward, the area is likely to continue seeing growth in property values and rental rates, reflecting its enduring appeal as a residential location.
