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Zip Code 79119: Rising Home Values and Shifting Ownership in Amarillo, Texas
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 79119, located in Amarillo, Texas, has experienced significant demographic and real estate changes 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 79119 has shown a declining trend over the years. In 2013, the area boasted a high homeownership rate of 79%. However, by 2022, this figure had decreased to 66%. This 13% drop in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in the area was $235,339. By 2022, it had risen to $354,889, representing a 50.8% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in homeownership trends. In 2013, when homeownership was at 79%, the federal interest rate was 0.11%. As interest rates gradually increased, reaching 1.68% in 2022, homeownership rates declined. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership by making mortgages more affordable, while higher rates can deter potential buyers.
As homeownership declined, the percentage of renters in zip code 79119 increased from 21% in 2013 to 34% in 2022. This shift coincided with fluctuations in average rent prices. In 2013, the average rent was $1,331. It decreased to $1,199 in 2017 but then rose again to $1,267 by 2022. The population of the zip code also grew significantly during this period, from 13,166 in 2013 to 21,775 in 2022, potentially contributing to increased demand for rental properties.
In 2023 and 2024, the real estate market in zip code 79119 continued to evolve. The average home price reached $366,719 in 2023 and further increased to $371,325 in 2024. This represents a 4.6% increase from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 79119 may continue to rise over the next five years, potentially reaching around $400,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 79119 has experienced a significant decrease in homeownership rates, coupled with substantial increases in average home prices. The rental market has grown, with more residents opting to rent as home prices and interest rates have risen. The area's population growth has likely contributed to increased demand for housing, both owned and rented. As the market continues to evolve, it will be crucial to monitor how these trends impact the local real estate landscape and community demographics.
