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Zip Code 78610: Buda, Texas Housing Market Dynamics - 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 78610, located in Buda, Texas, has experienced significant growth and dynamic changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 78610 has shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate stood at 84%, but by 2019, it had decreased to 76%. Interestingly, there was a slight uptick to 78% in 2020, which remained stable through 2022. This trend coincides with a dramatic increase in average home prices. In 2013, the average home price was $192,532, but by 2022, it had skyrocketed to $459,574, representing a 138.7% increase over nine years. This substantial rise in home prices likely contributed to the decline in homeownership rates, as affordability became a growing concern for potential buyers.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate stabilized at 78%. This stability in homeownership during a period of low interest rates aligns with the general trend of increased home buying activity when borrowing costs are more affordable.
The renter percentage in zip code 78610 has shown an inverse relationship to homeownership rates, increasing from 15% in 2013 to 24% in 2019, before settling at 22% from 2020 to 2022. This trend coincides with fluctuations in average rent prices. In 2013, the average rent was $1,488, which decreased to $1,319 in 2015 before rising again to $1,509 in 2022. The population growth in the area, from 25,562 in 2013 to 44,634 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the housing market in zip code 78610 experienced a shift. The average home price decreased from its peak in 2022, settling at $421,842 in 2023 and further declining to $403,716 in 2024. This represents a 12.2% decrease from the 2022 peak. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which likely influenced the cooling of home prices.
Looking ahead, based on the historical data and recent trends, we can project that average home prices in zip code 78610 may continue to experience a slight decline or stabilization over the next five years, potentially settling around $380,000 to $400,000. Average rent prices are likely to continue their upward trajectory, potentially reaching $1,700 to $1,800 by 2029, driven by population growth and demand for rental properties.
In summary, zip code 78610 has undergone significant changes in its housing market. The area has seen a general trend of decreasing homeownership rates coupled with dramatic increases in average home prices until 2022, followed by a recent cooling period. Renter percentages have increased, along with modest growth in average rent prices. The interplay between population growth, economic factors, and interest rates continues to shape the dynamic housing landscape of this Texas community.
