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Zip Code 78255: Rising Home Values and Stable Ownership in a Growing Texas Community
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 78255, located in Cross Mountain, Texas, has experienced significant growth and changes in its real estate landscape over the past decade. This area has seen a steady increase in population and housing prices, with homeownership rates remaining relatively stable.
The homeownership rate in zip code 78255 has shown minor fluctuations between 2013 and 2022, ranging from 75% to 80%. In 2013, the homeownership rate was 78%, and it remained at 78% in 2022. During this period, average home prices experienced a substantial increase. In 2013, the average home price was $308,715, and by 2022, it had risen to $535,411, representing a 73.4% increase over nine years. This trend suggests that despite rising home prices, the area has maintained a consistently high rate of homeownership.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates in the area slightly decreased from 78% to 75%. However, as interest rates began to rise from 2017 onwards, homeownership rates actually increased, reaching 80% in 2017 and stabilizing around 79% in subsequent years. This suggests that other factors, such as local economic conditions and housing demand, may have had a more significant impact on homeownership rates in this zip code than national interest rates.
Renter percentages in zip code 78255 have remained relatively stable, ranging from 20% to 25% between 2013 and 2022. Average rent prices have shown some fluctuation during this period. In 2013, the average rent was $1,769, and it peaked at $1,902 in 2017 before declining to $1,604 in 2022. This represents a 9.3% decrease in average rent from 2013 to 2022. The population growth from 11,384 in 2013 to 15,394 in 2022 (a 35.2% increase) doesn't seem to have significantly impacted rental rates, possibly due to an increase in housing supply keeping pace with demand.
In 2023 and 2024, average home prices in zip code 78255 continued to rise, reaching $557,692 in 2023 and slightly decreasing to $554,025 in 2024. This represents a 4.2% increase from 2022 to 2023, followed by a minor 0.7% decrease from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slight cooling in home prices.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 78255 may continue to increase moderately over the next five years, potentially reaching around $600,000 by 2029. However, the rate of increase is likely to slow compared to the rapid growth seen in previous years. Average rent prices may stabilize or show modest growth, potentially reaching approximately $1,800 per month by 2029, assuming economic conditions remain stable and housing supply continues to meet demand.
In summary, zip code 78255 has maintained a high and stable homeownership rate despite significant increases in average home prices. The area has experienced substantial population growth, which has been accompanied by increases in housing prices but relatively stable rental rates. The slight cooling of the housing market observed in 2024, coupled with high interest rates, suggests a potential moderation in price growth moving forward.
