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Zip Code 80112: Rising Home Values and Shifting Ownership Trends in Centennial, Colorado
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 80112, situated in Centennial, Colorado, has undergone significant changes in its housing market and demographics over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in this area. The percentage of owner-occupied homes in zip code 80112 decreased steadily from 66% in 2013 to 55% in 2022. Concurrently, average home prices experienced a substantial increase. In 2013, the average home price was $311,794, rising to $658,695 by 2022, representing a 111% increase over nine years. The relationship between federal interest rates and homeownership rates in this zip code reveals an interesting trend. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained relatively stable at around 65%. However, as interest rates began to rise from 2016 onwards, homeownership rates started to decline more rapidly. By 2022, when the federal interest rate reached 1.68%, the homeownership rate had dropped to 55%.
As homeownership rates declined, the percentage of renters in zip code 80112 increased from 33% in 2013 to 45% in 2022. This shift coincided with a significant rise in average rent prices. In 2013, the average rent was $1,437, and by 2022, it had increased to $1,874, a 30% rise over nine years. The growing population in the area, which increased from 29,493 in 2013 to 35,935 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
The most recent data shows that the average home price in zip code 80112 for 2023 was $648,397, showing a slight decrease from 2022. However, in 2024, the average home price rebounded to $660,871. It is noteworthy that the federal interest rate increased significantly to 5.02% in 2023 and further to 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, average home prices in zip code 80112 are expected to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $750,000 by 2029. Similarly, average rent prices are likely to continue rising, potentially reaching around $2,200 per month by 2029, driven by increasing demand and the growing population in the area.
In summary, zip code 80112 has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and rent prices. The interplay between federal interest rates, population growth, and housing market dynamics has contributed to these trends. As the area continues to evolve, it will be crucial to monitor how these factors shape the future of housing in this Colorado community.
