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Zip Code 81025: Rising Home Values and Resilient Ownership in Rural 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 81025, located in Boone, Colorado, is a rural area spanning 512.24 square miles. This region has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade. The area has maintained a predominantly owner-occupied housing market, with homeownership rates generally above 70% throughout the observed period.
The relationship between homeownership rates and average home prices in zip code 81025 reveals some interesting trends. In 2013, the homeownership rate was 79% with an average home price of $82,118. By 2022, the homeownership rate remained stable at 80%, while the average home price had increased dramatically to $210,840, representing a 156.7% increase over nine years. This substantial rise in home prices did not significantly impact homeownership rates, suggesting strong local demand for owned properties despite increasing costs.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, as interest rates remained low (below 0.5%), homeownership rates fluctuated between 71% and 83%. The period from 2017 to 2019 saw a slight increase in interest rates (1% to 2.16%), coinciding with relatively stable homeownership rates between 72% and 80%. In 2020 and 2021, as interest rates dropped to near-zero levels (0.38% and 0.08% respectively), homeownership rates increased to 85% and 83%, indicating a positive response to favorable borrowing conditions.
Renter percentages and average rent prices in zip code 81025 have shown some volatility. In 2013, the renter-occupied rate was 21% with an average rent of $841. By 2022, the renter percentage remained at 20%, but the average rent had decreased slightly to $804. However, this period saw significant fluctuations, with the highest average rent of $1,077 recorded in 2015 when the renter percentage was also 20%. The renter percentage peaked at 29% in 2016, coinciding with a high average rent of $1,067, suggesting a temporary shift towards renting during a period of increased rental costs.
As of 2024, the average home price in zip code 81025 has reached $220,982, showing a continued upward trend from the 2022 figure. This represents a 4.8% increase from 2023 when the average home price was $219,072. Interestingly, this growth has occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and increased further to 5.33% in 2024. This suggests a robust local housing market that has maintained growth even in the face of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in zip code 81025 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize or show modest increases, reflecting the area's consistent demand for rental properties. However, if interest rates remain high, there could be a slight shift towards renting, potentially pushing average rent prices upward.
In summary, zip code 81025 has demonstrated resilience in its housing market, with steadily increasing average home prices and relatively stable homeownership rates despite significant economic changes. The area has maintained a strong preference for homeownership, even as average home prices more than doubled over the past decade. The rental market has shown more volatility in pricing but has maintained a consistent share of the housing market. As the region moves forward, it appears poised for continued growth in property values, with the potential for subtle shifts in the ownership-to-rental ratio depending on broader economic factors.
