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Zip Code 89129: Rising Home Values and Ownership Rates in Las Vegas
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 89129, located in Las Vegas, Nevada, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a trend of increasing homeownership and rising average home prices, with some fluctuations in recent years. The percentage of owner-occupied homes in zip code 89129 has shown a steady increase from 65% in 2013 to 69% in 2022. This rise in homeownership coincided with a substantial increase in average home prices, which grew from $169,472 in 2013 to $448,279 in 2022, representing a 164% increase over nine years. The most dramatic price surge occurred between 2020 and 2022, with average home prices jumping from $316,405 to $448,279, a 42% increase in just two years.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. These low rates likely contributed to the steady increase in homeownership, as they made mortgages more affordable for potential buyers. The spike in homeownership from 65% in 2020 to 69% in 2022 coincided with interest rates remaining relatively low, at 0.38% in 2020 and 1.68% in 2022.
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As homeownership increased, the percentage of renters in zip code 89129 decreased from 35% in 2013 to 31% in 2022. Despite this decline, average rent prices rose steadily, from $1,398 in 2013 to $1,595 in 2022, a 14% increase. The population in the zip code grew from 51,792 in 2013 to 53,907 in 2022, which may have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.
In 2023, average home prices in zip code 89129 decreased to $427,857, a 4.5% drop from 2022. This decline occurred as federal interest rates rose sharply to 5.02% in 2023. The trend continued into 2024, with average home prices slightly recovering to $441,532, while interest rates further increased to 5.33%. These higher interest rates may impact future homeownership rates and property values in the area.
Looking ahead, predictive models suggest that average home prices in zip code 89129 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in recent years. Average rent prices are also expected to rise gradually, potentially reaching around $1,800 by 2029. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 89129 has demonstrated a clear trend of increasing homeownership and rising property values over the past decade. The area has seen significant growth in average home prices, particularly between 2020 and 2022. While renter percentages have decreased, average rent prices have continued to climb. Recent increases in federal interest rates have begun to impact the housing market, with a slight cooldown in home prices observed in 2023. The coming years may see more moderate growth in both home prices and rents as the market adjusts to higher interest rates and changing economic conditions.
