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Zip Code 78249: University Proximity Influences Average Home Values and Ownership Trends
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 78249, located in San Antonio, Texas, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates, accompanied by substantial increases in both average home prices and average rent prices.
The percentage of owner-occupied housing in zip code 78249 has shown a consistent decline from 2013 to 2022. In 2013, 62% of housing units were owner-occupied, but by 2022, this figure had dropped to 49%. Conversely, average home prices in the area have risen dramatically during the same period. In 2013, the average home price was $158,160, and by 2022, it had increased to $308,284, representing a 95% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 78249. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 60%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates declined more rapidly, dropping from 56% to 53%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renter-occupied housing in zip code 78249 has increased from 38% in 2013 to 51% in 2022, mirroring the decline in homeownership. Average rent prices have also risen during this period, though not as dramatically as home prices. In 2013, the average rent was $1,289, and by 2022, it had increased to $1,353, a 5% rise. The population of the zip code grew from 51,147 in 2013 to 62,252 in 2022, a 22% increase. This population growth, combined with rising home prices, likely contributed to the increased demand for rental properties and the subsequent rise in rental rates.
In 2023 and 2024, the housing market in zip code 78249 showed some interesting developments. The average home price in 2023 was $316,675, a 2.7% increase from 2022. However, in 2024, there was a slight decrease to $314,974, representing a 0.5% drop. This 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 prices in the area.
Looking ahead, based on current trends, we can predict that average home prices in zip code 78249 may experience moderate growth or stabilization over the next five years. The recent slight decrease in home prices, coupled with high interest rates, suggests a potential slowdown in price appreciation. Average rent prices are likely to continue increasing, albeit at a slower pace, driven by the area's growing population and the shift towards renting.
In summary, zip code 78249 has witnessed a significant shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and changing interest rates. The area's growing population has contributed to rising demand for both owned and rented properties. Recent data suggests a potential stabilization in the housing market, with future trends likely to be influenced by interest rates, population growth, and overall economic conditions in San Antonio.
