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Zip Code 80221: Rising Home Values and Ownership Rates in Berkley, 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 80221, located in Berkley, Colorado, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in owner-occupied housing, coupled with substantial growth in average home prices and average rent costs.
The ownership percentage in zip code 80221 has shown a steady upward trend, increasing from 60% in 2015 to 66% in 2022. This rise in homeownership coincided with a dramatic increase in average home prices. In 2013, the average home price was $170,609, but by 2022, it had skyrocketed to $485,348, representing a remarkable 184% increase over nine years. This trend suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or changing demographics in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. This period of low interest rates coincided with the increase in homeownership rates in zip code 80221, as lower rates typically make mortgages more affordable and encourage home buying. The sharp rise in interest rates to 5.02% in 2023 and 5.33% in 2024 may impact future homeownership trends in the area.
As homeownership increased, the percentage of renters in zip code 80221 decreased from 40% in 2015 to 34% in 2022. Despite this decline, average rent prices continued to rise steadily. In 2013, the average rent was $1,235, increasing to $1,425 by 2022, a 15.4% increase over nine years. This upward trend in rent prices, even as the renter population decreased, could be attributed to overall housing market pressures and increased property values in the area.
In 2023 and 2024, we observe a slight cooling in the housing market of zip code 80221. The average home price decreased slightly from $485,348 in 2022 to $475,829 in 2023, before rebounding slightly to $480,723 in 2024. This minor fluctuation occurs against the backdrop of significantly higher interest rates of 5.02% in 2023 and 5.33% in 2024, which may be tempering home price growth.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in both average home prices and average rent prices in zip code 80221 over the next five years, albeit at a potentially slower rate than seen in the previous decade. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $560,000 by 2029. Average rent prices are expected to rise by 2-3% per year, potentially reaching about $1,650 by 2029.
In summary, zip code 80221 has experienced a significant shift towards homeownership, accompanied by substantial increases in both average home prices and average rent costs. The area has shown resilience in its housing market, with homeownership rates continuing to rise even as prices increased dramatically. While recent data suggests a slight moderation in home price growth, the overall trend points towards continued appreciation in both the homeownership and rental markets in the coming years.
