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Zip Code 86046: Rising Home Values and High Ownership Rates in Rural Arizona
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
Valle, located in zip code 86046 in Arizona, is a growing community that has experienced significant changes in homeownership rates and housing prices over the past decade. This area, covering 3,215.42 square miles, has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in average rent prices.
The homeownership rate in Valle has shown a notable upward trend, particularly in recent years. In 2013, the homeownership rate was 75%, and by 2022, it had increased to 81%. This 6 percentage point increase coincides with a substantial rise in average home prices. In 2013, the average home price was $144,162, and by 2022, it had climbed to $408,557, representing a remarkable 183% increase over this period.
The relationship between federal interest rates and homeownership rates in Valle appears to follow the general trend observed nationwide. As interest rates remained low between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates in the area generally increased. The significant jump in homeownership from 75% in 2019 to 78% in 2020 coincided with a drop in federal interest rates from 2.16% to 0.38%, likely making home financing more accessible for many residents.
Renter percentages in Valle have correspondingly decreased as homeownership rates rose. In 2013, renters made up 25% of the population, which decreased to 19% by 2022. Interestingly, average rent prices have shown some volatility during this period. In 2013, the average rent was $1,132, which decreased to $886 in 2016 before rising again to $1,065 in 2022. This fluctuation in rent prices may be influenced by the changing supply and demand dynamics as more residents transition to homeownership.
Looking at the most recent data, the average home price in Valle for 2023 was $411,003, showing a slight increase from 2022. In 2024, the average home price further rose to $419,818. These continued increases occur despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which might typically slow down home buying activity. This suggests a strong demand for housing in the area, possibly driven by factors such as population growth or the area's desirability.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in Valle, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach around $450,000 to $500,000 by 2029 if current trends persist. Average rent prices may stabilize or show moderate increases, potentially reaching $1,200 to $1,300 per month in the next five years, assuming the homeownership trend continues and the rental market remains relatively stable.
In summary, Valle in zip code 86046 has experienced a significant increase in homeownership rates and average home prices over the past decade. The area has shown resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. The inverse relationship between homeownership and rental rates suggests a shift in housing preferences among residents. These trends indicate a robust and growing housing market in Valle, with potential for continued appreciation in property values and a stable rental market in the coming years.
