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Zip Code 83646: Meridian's Real Estate Boom and Homeownership Surge
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 83646, located in Meridian, Idaho, has experienced significant growth and changes in its housing market over the past decade. This area has seen a steady increase in homeownership rates, coupled with substantial rises in average home prices and average rent prices.
From 2013 to 2022, the percentage of owner-occupied homes in zip code 83646 increased from 79% to 82%. During this same period, average home prices saw a dramatic rise, starting at $204,572 in 2013 and reaching $572,525 in 2022, representing a 180% increase. This trend suggests a strong correlation between rising homeownership rates and increasing property values in the area.
The relationship between federal interest rates and homeownership rates in this zip code is notable. From 2013 to 2016, as interest rates remained low (ranging from 0.11% to 0.40%), homeownership rates increased from 79% to 81%. This trend continued through 2021, with homeownership reaching 84% while interest rates stayed below 1%. However, in 2022, as interest rates rose to 1.68%, there was a slight decrease in homeownership to 82%, indicating the potential impact of higher borrowing costs on homebuying decisions.
Renter percentages in zip code 83646 have shown a general decline from 17% in 2013 to 18% in 2022, with some fluctuations in between. Despite this overall decrease in the proportion of renters, average rent prices have steadily increased. In 2013, the average rent was $1,403, rising to $1,479 by 2022, a 5.4% increase. This trend suggests that while fewer people are renting proportionally, those who do rent are facing higher costs, possibly due to increased demand for rental properties or overall property value appreciation in the area.
Looking at the most recent data, average home prices in zip code 83646 experienced a decrease from $572,525 in 2022 to $518,540 in 2023, followed by a slight increase to $523,453 in 2024. This recent trend coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling of the housing market in the area.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in zip code 83646 will continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are expected to follow a similar trajectory, with steady but more modest increases over the next five years.
In summary, zip code 83646 has demonstrated a strong trend towards homeownership, with significant appreciation in property values over the past decade. The area has shown resilience in its housing market, with homeownership rates remaining high despite recent increases in interest rates. While renter percentages have decreased overall, average rent prices have continued to rise, reflecting the dynamic nature of the local real estate market. The coming years are likely to see continued growth in both home prices and rents, albeit at a more moderate pace than in recent years.
