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Zip Code 83641: Soaring Home Values and Ownership Rates in Rural 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 83641, located in Melba, Idaho, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural area, covering 111.31 square miles, has seen its population grow from 2,490 in 2010 to 2,756 in 2022, reflecting a gradual increase in local development and attractiveness.
The relationship between homeownership rates and average home prices in this zip code reveals an interesting trend. In 2013, the homeownership rate stood at 76%, with an average home price of $180,416. By 2022, the homeownership rate had increased to 85%, while the average home price surged to $638,266. This significant rise in both homeownership and property values suggests a strong local housing market and increasing desirability of the area. The most dramatic increase in average home prices occurred between 2020 and 2022, jumping from $386,505 to $638,266, a 65% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in zip code 83641. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increase in homeownership from 76% in 2013 to 82% in 2020. As interest rates began to rise in 2022 to 1.68%, we see homeownership continue to climb to 85%, suggesting other local factors may be influencing this trend.
Renter percentages and average rent prices in 83641 have shown an inverse relationship to homeownership rates. In 2013, renters made up 24% of the population, with an average rent of $734. By 2022, the renter percentage had decreased to 15%, while the average rent increased to $914. This trend indicates a shift towards homeownership in the area, possibly driven by the rising rental costs making homeownership a more attractive option for residents.
In 2023 and 2024, we see a slight cooling in the housing market of zip code 83641. The average home price decreased from $638,266 in 2022 to $596,746 in 2023, before slightly recovering to $600,026 in 2024. This coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be moderating home price growth and potentially impacting affordability for prospective buyers.
Looking ahead, our predictive models suggest a continued moderate growth in both average home prices and rents over the next five years. Average home prices are expected to increase by approximately 3-5% annually, potentially reaching around $700,000 by 2029. Average rents are projected to grow at a similar rate, potentially exceeding $1,100 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 83641 has demonstrated a strong trend towards homeownership, with a significant increase in average home prices over the past decade. The area has shown resilience in its housing market, even in the face of rising interest rates. The declining renter population and increasing rent prices further underscore the shift towards homeownership. As we move forward, the interplay between interest rates, housing affordability, and local economic factors will continue to shape the housing landscape in this Idaho community.
