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Zip Code 80018: Aurora's Suburban Haven with Soaring Home Values and High 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 80018, located in Aurora, Colorado, has experienced significant growth and changes in its real estate landscape over the past decade. This area has seen a steady increase in population and a strong preference for homeownership, coupled with rising average home prices and average rent costs.
The homeownership rate in zip code 80018 has shown a notable upward trend, increasing from 86% in 2019 to 90% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2019, the average home price was $413,159, which climbed to $581,224 by 2022, representing a 40.7% increase over just three years. This strong correlation between rising homeownership rates and increasing home prices suggests a growing demand for properties in this area, possibly driven by factors such as local economic growth or improvements in community amenities.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 80018. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% in 2019 to 0.08% in 2021. This low-interest environment likely contributed to the increase in homeownership, as it made mortgage financing more accessible and affordable for potential buyers. The homeownership rate rose from 86% to 88% during this period, aligning with the trend of lower interest rates encouraging homeownership.
While homeownership has been on the rise, the percentage of renters in zip code 80018 has decreased from 14% in 2019 to 10% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. The average rent increased from $2,132 in 2019 to $2,099 in 2022, with a peak of $2,203 in 2021. This trend suggests that even with fewer renters, the demand for rental properties remains strong, possibly due to the overall population growth in the area, which increased from 11,765 in 2019 to 13,700 in 2022.
Looking at the most recent data, the average home price in zip code 80018 slightly decreased to $563,950 in 2023 but showed a minor uptick to $567,178 in 2024. This recent stabilization in home prices occurs against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be moderating home price growth and could potentially impact future homeownership rates.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 80018 will continue to rise, albeit at a more moderate pace. The rate of increase is expected to slow down compared to the rapid growth seen in recent years, potentially reaching around $650,000 by 2029. Average rent prices are also projected to increase, potentially reaching approximately $2,400 per month in the next five years, driven by ongoing population growth and the area's desirability.
In summary, zip code 80018 has demonstrated a strong trend towards homeownership, with rising average home prices and a decreasing proportion of renters. The area has shown resilience in its real estate market, with both home prices and rent costs increasing despite economic fluctuations. The recent stabilization in home prices, coupled with higher interest rates, suggests a potential shift towards a more balanced market in the coming years. As the population continues to grow, this zip code is likely to remain an attractive area for both homeowners and investors.
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