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Zip Code 79413: Rising Home Values and Stable Ownership in Lubbock, 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 79413, located in Lubbock, Texas, covers an area of 4.71 square miles and has experienced significant changes in its housing market over the past decade. This suburban area has seen fluctuations in homeownership rates alongside substantial increases in average home prices and rent. The overall trend indicates a slight decrease in homeownership, coupled with considerable growth in property values and rental costs.
The homeownership rate in zip code 79413 has shown a slight downward trend from 2013 to 2022. In 2013, the area had a 60% homeownership rate, which decreased to 58% by 2022. This decline coincided with a substantial increase in average home prices. The average home price rose from $119,738 in 2013 to $192,701 in 2022, representing a 61% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices rising from $150,069 to $192,701, a 28.4% increase in just two years.
Federal interest rates have played a role in homeownership trends in zip code 79413. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%, during which homeownership rates remained relatively stable between 57% and 60%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates showed slight fluctuations but generally remained within the 57% to 61% range. The sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a slight increase in homeownership to 60% in 2020, likely due to more affordable financing options.
The renter population in zip code 79413 has shown a corresponding increase as homeownership rates declined. The percentage of renters rose from 40% in 2013 to 42% in 2022. This increase in renters was accompanied by a significant rise in average rent prices. In 2013, the average rent was $1,085, which increased to $1,313 by 2022, representing a 21% increase over this period. The most substantial jump in average rent occurred between 2019 and 2021, rising from $1,183 to $1,392, a 17.7% increase in just two years. This trend aligns with the population growth in the area, which increased from 20,857 in 2013 to 23,287 in 2022, potentially contributing to higher demand for rental properties.
As of 2024, the average home price in zip code 79413 has reached $197,865, showing a continued upward trend from the 2022 figure of $192,701. This represents a 2.7% increase over two years. The federal interest rate as of 2024 stands at 5.33%, significantly higher than the 1.68% rate in 2022. This substantial increase in interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current data, we can predict that average home prices in zip code 79413 will continue to rise over the next five years, albeit at a slower pace due to higher interest rates. We estimate that by 2029, average home prices could reach approximately $220,000 to $230,000. Average rent prices are also expected to increase, potentially reaching around $1,500 to $1,600 by 2029, assuming the current trends in population growth and housing demand continue.
In summary, zip code 79413 has experienced a slight decrease in homeownership rates over the past decade, coupled with substantial increases in both average home prices and average rent prices. The area has seen significant population growth, which has likely contributed to the rising housing costs. Despite fluctuations in federal interest rates, the housing market in this zip code has shown resilience and continued appreciation. The coming years are likely to see further increases in both home prices and rent, although the pace of growth may be moderated by higher interest rates.
