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Zip Code 78641: Leander's Resilient Housing Market Amidst Soaring Home Values
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 78641 encompasses Leander, Texas, a rapidly growing suburb located northwest of Austin. This area has experienced significant population growth and dynamic shifts in its housing market over the past decade. The ownership percentage has remained relatively stable, while average home prices and average rent prices have shown notable increases.
The homeownership rate in zip code 78641 has fluctuated slightly but remained generally high, ranging from 79% to 82% between 2013 and 2022. During this period, average home prices experienced substantial growth. In 2013, the average home price was $217,889, which steadily increased to $548,247 by 2022, representing a remarkable 151.6% increase over nine years. This trend suggests a strong correlation between rising property values and sustained high homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of increasing homeownership rates in the zip code, which peaked at 82% in 2016. As interest rates began to rise from 2017 onwards, homeownership rates stabilized around 82% until 2020. The slight dip to 79% in 2020 and 2022 may be attributed to the rising interest rates, which reached 1.68% in 2022, potentially making home purchases less affordable for some buyers.
Renter percentages in zip code 78641 have remained relatively low, fluctuating between 17% and 21% from 2013 to 2022. Average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $1,532, which increased to $1,578 by 2022, representing a modest 3% increase over the nine-year period. The stability in renter percentages, despite the area's significant population growth from 49,754 in 2013 to 84,817 in 2022, suggests that new housing developments have largely catered to homeowners rather than renters.
In 2023 and 2024, the housing market in zip code 78641 experienced a shift. The average home price decreased from the 2022 peak of $548,247 to $485,280 in 2023, and further to $464,003 in 2024. This represents a 15.4% decrease over two years. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, likely contributing to the cooling of home prices.
Looking ahead, we can forecast trends for the next five years based on historical data and recent market shifts. Average home prices are likely to stabilize and potentially show modest growth as the market adjusts to higher interest rates. We may see prices ranging from $470,000 to $520,000 by 2029. Average rent prices are expected to continue their gradual upward trend, potentially reaching $1,700 to $1,850 per month by 2029, driven by population growth and demand for rental properties.
In summary, zip code 78641 has maintained a high rate of homeownership despite significant increases in average home prices over the past decade. The recent cooling of the housing market, coupled with rising interest rates, may lead to a more balanced market in the coming years. The area's consistent population growth suggests ongoing demand for both owned and rented housing, with a slight preference for homeownership.
