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Zip Code 79707: Rising Home Values and Stable Ownership in Midland, 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 79707, located in Midland, Texas, has experienced significant changes in its housing market over the past decade. This area has shown dynamic shifts in homeownership rates, average home prices, and average rent prices, reflecting the broader economic trends of the region. The homeownership rate in zip code 79707 has remained relatively stable, fluctuating between 59% and 62% from 2013 to 2022. Despite this stability, average home prices have shown a substantial increase. In 2010, the average home price was $207,410, which rose dramatically to $368,562 by 2022, representing a 77.7% increase over 12 years. This trend suggests that while the proportion of homeowners remained consistent, the value of properties in the area appreciated significantly.
Federal interest rates have played a role in shaping homeownership trends. For instance, in 2020, when interest rates dropped to 0.38%, homeownership in the zip code reached 62%, its highest level in the dataset. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's worth noting that despite rising interest rates in 2022 (1.68%), homeownership remained strong at 60%, indicating other factors may also influence ownership decisions in this area.
Renter percentages in zip code 79707 have mirrored homeownership rates, ranging from 38% to 41% between 2013 and 2022. Average rent prices have shown a general upward trend, increasing from $1,185 in 2013 to $1,392 in 2022, a 17.5% rise. Interestingly, the highest average rent of $1,524 was recorded in 2021, coinciding with a slight dip in the renter percentage to 39%. The population in the zip code has also fluctuated, reaching a peak of 40,876 in 2019 before declining to 39,415 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, average home prices in zip code 79707 continued their upward trajectory. The average home price reached $377,216 in 2023 and further increased to $389,470 in 2024, representing a 3.2% year-over-year growth. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in zip code 79707 to continue their upward trend over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also likely to increase, driven by ongoing demand and rising property values. However, the rate of increase may be tempered by affordability concerns and potential shifts in population dynamics.
In summary, zip code 79707 has demonstrated robust growth in property values over the past decade, with average home prices nearly doubling since 2010. Despite fluctuations in federal interest rates and population, homeownership rates have remained relatively stable. The rental market has shown steady growth in average rent prices, reflecting the area's overall economic health and desirability. As we move forward, the interplay between property values, interest rates, and demographic shifts will continue to shape the housing market in this Midland zip code.
