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Zip Code 77407: Rising Home Values and Ownership Trends in Houston's Rapidly Growing Suburb
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 77407, located in Houston, Texas, has experienced significant growth and development over the past decade. This area has seen a substantial increase in population, coupled with fluctuations in homeownership rates and rising average home and rent prices. The ownership percentage has remained relatively stable, while average home prices have shown a steady upward trend, and average rent prices have increased notably in recent years.
The homeownership rate in zip code 77407 has remained fairly consistent, with a slight decrease from 84% in 2013 to 80% in 2022. During this same period, average home prices have shown a significant upward trend. In 2013, the average home price was $197,697, which increased to $383,539 by 2022, representing a 94% increase over nine years. This trend suggests that despite rising home prices, the area has maintained a strong appeal for homeowners.
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 the highest homeownership rates in the zip code, reaching 86% in 2018. As interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), we see a slight decrease in homeownership to 80%, indicating that higher interest rates may be impacting affordability and homeownership decisions.
The percentage of renters in zip code 77407 has shown a slight increase from 13% in 2013 to 20% in 2022. This trend correlates with a significant rise in average rent prices. In 2013, the average rent was $1,449, which increased to $2,038 by 2022, representing a 41% increase. The population growth in the area, from 32,359 in 2013 to 75,845 in 2022, has likely contributed to the increased demand for rental properties and subsequent rise in rent prices.
Looking at the most recent data, the average home price in zip code 77407 for 2023 was $387,900, showing a continued upward trend. In 2024, the average home price further increased to $392,845. Correspondingly, interest rates have risen to 5.33% in 2024, which may impact homebuying decisions in the near future.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 77407 to continue their upward trajectory, potentially reaching around $450,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $2,500 per month within the next five years, assuming current economic conditions and population growth trends persist.
In summary, zip code 77407 has demonstrated strong growth in both population and property values over the past decade. While homeownership rates have remained relatively stable, there has been a slight shift towards renting in recent years. The area has shown resilience in maintaining high homeownership rates despite significant increases in average home prices. However, rising interest rates and increasing property values may present challenges for future homebuyers. The rental market has also seen substantial growth, with rising average rents reflecting the area's increasing desirability and population growth.
