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Zip Code 83434: Stable Homeownership Amidst Rising Home Values in Menan, Idaho
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 83434, located in Menan, Idaho, presents an intriguing case study of homeownership and housing market dynamics. This area has experienced fluctuations in its ownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 83434 has remained relatively stable, hovering around 80% from 2013 to 2022. However, there have been subtle shifts within this period. In 2013, the homeownership rate stood at 84%, the highest recorded in the available data. It then experienced a slight decline, reaching its lowest point of 79% in 2019. By 2022, it had rebounded slightly to 81%. Concurrently, average home prices in the area have shown a significant upward trend. In 2013, the average home price was $142,541. This figure steadily increased over the years, reaching $407,773 in 2022, representing a remarkable 186% increase over this nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code doesn't follow a clear-cut pattern. For instance, despite historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.40%), the homeownership rate actually decreased slightly from 84% to 83%. Conversely, when interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), the homeownership rate remained relatively stable, only dropping to 79% by 2019. This suggests that local factors may have a more significant influence on homeownership rates in this area than national interest rate trends.
Renter percentages in zip code 83434 have shown a slight increase over the years, moving from 15% in 2013 to 19% in 2022. This trend has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $771. It peaked at $954 in 2014 before declining to $683 in 2018. By 2022, the average rent had stabilized at $700. Interestingly, the period of highest average rent (2014) coincided with one of the lowest population figures (1,767) in the dataset, suggesting that supply and demand dynamics play a significant role in rental pricing in this area.
Looking at more recent data, the average home price in zip code 83434 for 2023 was $394,006, showing a slight decrease from the 2022 peak. This trend continued into 2024, with average home prices further declining to $392,205. These figures coincide with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This correlation suggests that higher interest rates may be cooling the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 83434 may experience a period of stabilization or slight decline in the short term, influenced by the current high interest rate environment. However, given the area's historical trend of appreciation, prices are likely to resume an upward trajectory in the medium to long term, albeit at a more moderate pace than seen in recent years. For rent prices, we expect a gradual increase over the next five years, potentially reaching around $750-$800 per month, assuming steady population growth and continued demand for rental properties.
In summary, zip code 83434 has demonstrated resilience in its homeownership rates despite significant increases in average home prices. The rental market has shown more volatility, with fluctuations in both renter percentages and average rent prices. Recent data suggests a potential cooling of the housing market, likely influenced by rising interest rates. Moving forward, we anticipate a period of market adjustment followed by resumed growth in both home prices and rents, reflecting the area's long-term appreciation trends and evolving demographic patterns.
