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Zip Code 80640: Rising Home Values and Ownership Rates in Commerce City, 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 80640, located in Commerce City, Colorado, has experienced notable changes in its housing market over the past decade. This area has seen significant growth in population and shifts in homeownership rates, along with fluctuations in average home and rent prices. Overall, the trend shows an increase in homeownership and rising property values, while average rent prices have remained relatively stable.
The homeownership rate in zip code 80640 has shown a general upward trend from 2013 to 2022. In 2013, 78% of residents were homeowners, which increased to 81% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $222,442, which more than doubled to $543,734 by 2022. This represents a remarkable 144% increase in average home values over a nine-year period.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 75-76%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a notable increase in homeownership, reaching 83% in 2019. This suggests that rising interest rates may have prompted more residents to purchase homes before rates climbed further.
The renter population in zip code 80640 has inversely mirrored the homeownership trend, decreasing from 22% in 2013 to 19% in 2022. Despite this decrease in the renter population, average rent prices have shown a modest upward trend. In 2013, the average rent was $1,544, which increased to $1,605 by 2022, representing a 4% rise over nine years. This relatively slow growth in rent prices, compared to the rapid increase in home values, may have contributed to the shift towards homeownership in the area.
Looking at the most recent data, the average home price in zip code 80640 slightly decreased from $543,734 in 2022 to $524,863 in 2023, a 3.5% drop. However, in 2024, prices have stabilized, showing a marginal increase to $525,366. This recent trend coincides with a significant rise in interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a more moderate pace than observed in the past decade. Average home prices are projected to reach approximately $600,000 by 2029. For rent prices, the forecast suggests a steady but slow increase, potentially reaching around $1,700 by 2029.
In summary, zip code 80640 has demonstrated a strong trend towards increased homeownership and rapidly appreciating property values over the past decade. The area has shown resilience in its housing market, with recent stabilization in home prices despite rising interest rates. The modest growth in rent prices compared to substantial increases in home values has likely contributed to the shift towards homeownership. As the area continues to develop, it's expected to maintain its appeal to homeowners while potentially seeing a gradual increase in both home values and rent prices in the coming years.
