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Zip Code 89436: Rising Home Values and Steady Ownership Rates in a Growing Sparks, Nevada Community
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 89436, located in Sparks, Nevada, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a general trend of increasing homeownership and rising property values, with some fluctuations in the rental market. The homeownership rate in zip code 89436 has shown a notable increase from 2013 to 2022. In 2013, the homeownership rate was 74%, and by 2022, it had risen to 75%. This upward trend coincided with a substantial increase in average home prices. In 2013, the average home price was $220,547, and by 2022, it had more than doubled to $584,816. This significant appreciation in home values likely contributed to the growing attraction of homeownership in the area.
Federal interest rates have played a role in homeownership trends in zip code 89436. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 71-72%. As interest rates began to rise from 2017 to 2019 (1.00% to 2.16%), there was a slight increase in homeownership, reaching 76% in 2019. This suggests that residents may have been motivated to purchase homes before interest rates potentially increased further.
The rental market in zip code 89436 has shown some interesting trends. The percentage of renters decreased from 26% in 2013 to 25% in 2022. Despite this slight decrease in the renter population, average rent prices have increased significantly. In 2013, the average rent was $1,631, and by 2022, it had risen to $1,816, representing an 11.3% increase over nine years. This increase in rent prices, coupled with the growing population (from 34,416 in 2013 to 43,640 in 2022), suggests a competitive rental market despite the overall preference for homeownership.
Looking at the most recent data for 2023 and 2024, we see some interesting developments. The average home price in 2023 was $546,258, showing a decrease from the 2022 peak of $584,816. However, in 2024, the average home price has slightly rebounded to $553,669. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 89436 to continue their overall upward trajectory, albeit at a more moderate pace due to the current higher interest rate environment. Average rent prices are also likely to continue increasing, driven by population growth and the area's desirability. However, the rate of increase may slow down as more housing units become available to meet demand.
In summary, zip code 89436 has demonstrated a strong preference for homeownership, with rising property values and a growing population. The area has shown resilience in both the homeownership and rental markets, with consistent increases in average home prices and rent over the past decade. The recent cooling in home prices, coupled with higher interest rates, may lead to a more balanced market in the coming years, potentially offering opportunities for both buyers and renters.
