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Zip Code 80106: High Homeownership and Rising Home Values in Black Forest's Pine-Covered Haven
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 80106, located in Black Forest, Colorado, is a predominantly rural area known for its unique pine forest ecosystem. This zip code has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 80106 has shown a general upward trend, increasing from 89% in 2016 to 93% in 2022. This rise in homeownership coincides with a significant increase in average home prices, which grew from $372,526 in 2016 to $722,705 in 2022, representing a substantial 94% increase over six years. The correlation between rising home prices and increasing homeownership rates suggests a strong local housing market with growing demand for property ownership.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely contributed to the sustained high levels of homeownership. The dramatic drop in interest rates to 0.08% in 2021 coincided with a peak in homeownership at 95%, illustrating how lower borrowing costs can stimulate home buying activity.
Renter percentages in zip code 80106 have remained relatively low, fluctuating between 5% and 8% from 2016 to 2022. Average rent prices showed some volatility during this period, peaking at $1,660 in 2016 before declining to $1,170 in 2022. This 29.5% decrease in average rent prices, coupled with the area's growing population (from 5,328 in 2016 to 5,618 in 2022), suggests a potential shift in the local rental market dynamics, possibly influenced by increased homeownership rates.
In 2023 and 2024, the housing market in zip code 80106 experienced a slight cooling off period. Average home prices decreased from the 2022 peak of $722,705 to $706,861 in 2023, before rebounding slightly to $711,674 in 2024. This minor correction occurs against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer demand.
Looking ahead, predictive models suggest that average home prices in zip code 80106 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are projected to stabilize and potentially see modest increases, reflecting the area's consistent population growth and limited rental inventory.
In summary, zip code 80106 has demonstrated a robust housing market characterized by high and increasing homeownership rates, significant appreciation in average home values, and a relatively small but stable rental market. The recent moderation in home prices and the impact of rising interest rates will likely shape the area's housing dynamics in the coming years, potentially affecting affordability and homeownership trends.
