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Zip Code 81620: Average Home Values and Ownership Trends in Avon, Colorado's Ski Resort Proximity
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 81620, located in Avon, Colorado, is a picturesque mountain community spanning 15.19 square miles. This area has experienced significant fluctuations in homeownership rates and property values over the past decade, reflecting the dynamic nature of its real estate market.
The ownership percentage in this zip code has shown a general upward trend, rising from 46% in 2013 to 57% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $517,693, which more than doubled to $1,140,654 by 2022. This dramatic increase in property values may have influenced the shift towards homeownership, as residents sought to capitalize on the appreciating real estate market.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 81620. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates increased from 46% to 50%, likely due to more affordable financing options. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership continued to grow, possibly driven by the anticipation of future rate increases and the desire to secure lower mortgage rates while possible.
Renter percentages in the area have inversely mirrored the homeownership trend, decreasing from 52% in 2013 to 43% in 2022. Average rent prices have shown significant volatility during this period. In 2013, the average rent was $1,243, which increased to $1,635 in 2022, with notable fluctuations in between. The highest average rent was recorded in 2021 at $2,078, coinciding with a population dip to 6,387 residents. This spike in rent prices may have been influenced by a temporary housing shortage or increased demand for rental properties during that year.
As of 2024, the average home price in zip code 81620 has reached $1,258,804, representing a 10.4% increase from 2022. This continued appreciation in property values occurs alongside a federal interest rate of 5.33% in 2024, which is significantly higher than the rates observed in the previous decade. Despite the higher interest rates, the sustained increase in home prices suggests a strong demand for properties in this area.
Looking ahead, predictive models forecast a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are expected to surpass the $1.5 million mark by 2029, while average rent prices could potentially reach $2,500 per month. These projections are based on the historical growth patterns and the area's sustained attractiveness to both homeowners and investors.
In summary, zip code 81620 has demonstrated a clear trend towards increased homeownership and rapidly appreciating property values over the past decade. The interplay between federal interest rates, population fluctuations, and local economic factors has contributed to a dynamic real estate market characterized by rising home prices and volatile rent rates. As the area continues to evolve, it is likely to remain an attractive destination for both permanent residents and investors, driving further growth in the local housing market.
