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Zip Code 88008: Home Values Soar as Ownership Surges in Santa Teresa, New Mexico
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 88008, located in Santa Teresa, New Mexico, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable shift in homeownership rates and fluctuations in both average home prices and average rent prices.
The ownership percentage in zip code 88008 has shown a remarkable upward trend, particularly in recent years. In 2013, the homeownership rate stood at 63%, and by 2022, it had increased dramatically to 90%. This substantial rise in homeownership coincides with interesting trends in average home prices. The average home price in 2013 was $197,039, and it experienced a period of decline before rebounding. By 2022, the average home price had risen to $275,689, representing a 40% increase over the 2013 figure.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting case. Despite generally low interest rates from 2013 to 2020 (ranging from 0.09% to 2.16%), the homeownership rate only began its sharp ascent from 2019 onwards. This suggests that while low interest rates may have played a role, other local factors likely contributed significantly to the surge in homeownership.
Conversely, the percentage of renters in zip code 88008 has decreased substantially. In 2013, renters made up 37% of the population, but by 2022, this figure had dropped to just 10%. Interestingly, average rent prices have not shown a consistent trend during this period. The average rent was $941 in 2013, fluctuated over the years, and stood at $919 in 2022. Despite the significant decrease in the renter population, rent prices have remained relatively stable, possibly due to the overall population growth in the area, which increased from 5,617 in 2013 to 6,913 in 2022.
Looking at the most recent data, the average home price in zip code 88008 continued to rise, reaching $293,764 in 2023 and $302,433 in 2024. This represents a 6.6% increase from 2022 to 2023 and a further 3% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices in the area have continued to appreciate, suggesting strong local demand for housing.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 88008 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project average home prices could reach approximately $335,000 to $350,000 by 2029. For average rent prices, given the historical volatility and recent stability, we expect modest growth, potentially reaching $950 to $1,000 per month by 2029.
In summary, zip code 88008 has experienced a significant shift towards homeownership, with the rate increasing from 63% to 90% between 2013 and 2022. This trend has occurred alongside an overall increase in average home prices, particularly accelerating in recent years. Despite rising interest rates, home prices have continued to appreciate, indicating strong local market fundamentals. The rental market has shrunk considerably, yet average rent prices have remained relatively stable. These trends suggest a transforming housing landscape in Santa Teresa, with a strong preference for homeownership emerging among residents.
