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Zip Code 83709: Boise City's Rising Home Values and Ownership Amidst Market Volatility
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 83709, located in Boise City, Idaho, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a steady increase in owner-occupied housing units, coupled with rising average home prices and average rent costs.
The homeownership rate in zip code 83709 has shown a consistent upward trend, increasing from 75% in 2014 to 81% in 2022. This 6 percentage point increase in homeownership coincides with a substantial rise in average home prices. In 2014, the average home price was $184,025, which more than doubled to $499,894 by 2022. This trend suggests that despite rising prices, more residents in the area were able to purchase homes, possibly due to factors such as income growth or favorable lending conditions.
Federal interest rates have played a significant role in shaping homeownership trends. From 2014 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the increase in homeownership rates from 75% to 80%. Lower interest rates generally make mortgages more affordable, encouraging home buying. However, it's worth noting that homeownership continued to rise even as interest rates increased to 1.68% in 2022, indicating other factors were also at play in this market.
As homeownership increased, the percentage of renters in zip code 83709 decreased from 24% in 2014 to 19% in 2022. Despite this decline in the renter population, average rent prices showed an upward trend. The average rent increased from $1,183 in 2014 to $1,235 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,352. This increase in rent prices, despite a decreasing renter population, could be attributed to factors such as overall housing demand in the area or improvements in rental property quality.
In 2023 and 2024, we see some interesting developments in the housing market of zip code 83709. The average home price in 2023 was $458,639, showing a decrease from the 2022 peak of $499,894. However, in 2024, there's a slight recovery with the average home price rising to $468,172. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the moderation in home prices as higher borrowing costs can dampen demand.
Looking ahead, based on historical trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices may continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in the early 2020s. We might expect average home prices to reach around $525,000 to $550,000 by 2029. Average rent prices could also continue their upward trajectory, potentially reaching $1,400 to $1,500 per month by 2029. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 83709 has demonstrated a strong trend towards homeownership, with increasing average home prices and a growing owner-occupied housing percentage. The rental market, while shrinking in terms of population, has seen rising average rents. Recent data shows a slight cooling in the housing market, possibly influenced by rising interest rates. The area's real estate market appears dynamic and resilient, with potential for continued growth in both home values and rental prices in the coming years.
