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Zip Code 83406: Ammon's Homeownership and Value Trends Amid Population Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 83406, located in Ammon, Idaho, has experienced significant changes in its housing market over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 83406 has remained relatively stable, with some minor fluctuations. In 2013, the homeownership rate stood at 76%, and by 2022, it had slightly decreased to 74%. During this period, average home prices in the area saw substantial growth. In 2013, the average home price was $160,348, which steadily increased to $432,707 by 2022, representing a remarkable 170% increase over nine years. This trend suggests that while homeownership rates remained relatively steady, the value of owned properties significantly appreciated.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 83406. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at around 75-76%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was a slight dip in homeownership, reaching 71% in 2018. However, when interest rates dropped sharply in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded to 75%, illustrating the inverse relationship between interest rates and homeownership.
Renter percentages in zip code 83406 have shown slight variations, generally inversely mirroring homeownership rates. In 2013, the renter percentage was 24%, and it increased to 28% by 2019 before settling at 26% in 2022. Average rent prices have steadily increased during this period, rising from $1,054 in 2013 to $1,313 in 2022, a 24.6% increase. This trend in rent prices, while significant, was less dramatic than the rise in home prices. The population growth from 15,845 in 2013 to 19,141 in 2022 likely contributed to the upward pressure on both home prices and rents.
In 2023 and 2024, the housing market in zip code 83406 experienced a notable shift. The average home price decreased from its peak of $432,707 in 2022 to $407,252 in 2023, marking a 5.9% decline. However, there was a slight recovery in 2024, with prices rising to $409,812. This occurred against the backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007.
Looking ahead, predictive models suggest that average home prices in zip code 83406 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid appreciation seen in the early 2020s. Average rent prices are likely to maintain their upward trajectory, driven by population growth and the area's economic development. However, the rate of increase may be tempered by the overall economic conditions and housing supply adjustments.
In summary, zip code 83406 has demonstrated resilience in its housing market, with stable homeownership rates despite significant increases in property values. The inverse relationship between interest rates and homeownership has been evident, particularly during periods of extremely low rates. The rental market has shown steady growth, both in terms of renter percentages and average rent prices, reflecting the area's increasing population and demand for housing. The recent moderation in home prices, coupled with higher interest rates, suggests a potential rebalancing of the market, which could influence future trends in both the ownership and rental sectors.
