While homeownership rates were rising, the percentage of renters in zip code 79938 decreased from 25% in 2016 to 20% in 2022. Despite this decrease in the renter population, average rent prices showed some fluctuation. In 2016, the average rent was $1,123, which increased to $1,230 in 2021, before dropping slightly to $1,121 in 2022. The population growth from 65,911 in 2016 to 81,347 in 2022 may have contributed to the overall pressure on housing costs, including rent prices.

Looking at the most recent data, the average home price in zip code 79938 reached $239,200 in 2023 and further increased to $243,038 in 2024. This represents a 6.5% increase from 2022 to 2023 and a 1.6% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 79938 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic conditions, we project average home prices could reach approximately $270,000 to $280,000 by 2029. For rent prices, the forecast suggests a potential increase to around $1,300 to $1,350 per month over the next five years, assuming consistent economic growth and demand in the area.

In summary, zip code 79938 has demonstrated a strong trend towards increased homeownership, with rates rising from 74% to 80% between 2016 and 2022. This trend has been accompanied by significant growth in average home prices, particularly in recent years. While the renter population has decreased, rent prices have shown some volatility. The area's substantial population growth has likely influenced these housing market dynamics. Moving forward, the interplay between rising interest rates, continued population growth, and housing demand will be crucial in shaping the future of this zip code's real estate landscape.