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Zip Code 78733: Austin Suburb's Soaring Home Values and Stable Ownership Rates
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 78733, located in Austin, Texas, covers an area of 11.92 square miles and has demonstrated a remarkably stable housing market over the past decade. This suburban area has maintained a consistently high rate of homeownership, averaging around 88% from 2013 to 2022. During this period, the area experienced significant growth in average home prices, while average rent prices fluctuated.
The homeownership rate in zip code 78733 has remained steady, ranging from 87% to 90% between 2013 and 2022. Concurrently, average home prices have shown substantial appreciation. In 2013, the average home price was $516,433, which steadily increased to $772,940 by 2020. The market then experienced a dramatic surge, with average home prices reaching $1,045,805 in 2021 and peaking at $1,289,583 in 2022, representing a 150% increase from 2013 to 2022. This upward trend in home prices did not significantly impact the homeownership rate, suggesting a strong and resilient homeowner base in the area.
Federal interest rates have played a role in the housing market dynamics of zip code 78733. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the steady increase in average home prices and stable homeownership rates. The extremely low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) likely contributed to the sharp rise in home prices observed in those years, as lower borrowing costs often stimulate housing demand.
The rental market in zip code 78733 has shown interesting trends. The percentage of renters has remained relatively low, fluctuating between 10% and 13% from 2013 to 2022. Average rent prices have experienced some volatility. In 2013, the average rent was $1,573, which increased to $2,465 in 2015, representing a 57% jump. However, rent prices then decreased, stabilizing around $1,800 to $1,900 between 2017 and 2020. In 2021, there was another significant increase to $2,117, followed by a slight decrease to $1,835 in 2022. These fluctuations in rent prices don't appear to have significantly impacted the renter percentage, suggesting a relatively inelastic rental market in this area.
Looking at the most recent data, the average home price in zip code 78733 for 2023 was $1,209,700, showing a slight decrease from the 2022 peak. The 2024 average home price further declined to $1,184,585. Interestingly, this cooling in the housing market coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the moderation in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 78733 may continue to experience a slight cooling period in the short term due to the current high interest rates. However, given the area's desirability and historical growth, prices are likely to stabilize and potentially resume an upward trend, albeit at a more moderate pace. For rent prices, we expect to see continued fluctuations, potentially trending upwards in line with inflation and housing market pressures, but remaining within the $1,800 to $2,500 range observed in recent years.
In summary, zip code 78733 in Austin, Texas, demonstrates a robust housing market characterized by high homeownership rates and significantly appreciating home values over the past decade. Despite substantial increases in home prices, the area has maintained a stable ownership-to-rental ratio. The rental market, while smaller, has shown resilience with fluctuating but generally increasing rent prices. Recent cooling in the housing market, coinciding with rising interest rates, suggests a potential period of stabilization ahead.
