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Zip Code 89519: Rising Home Values and Ownership Rates in Reno's Resilient Housing Market
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 89519, located in Reno, Nevada, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, coupled with fluctuations in the rental market.
The homeownership rate in zip code 89519 has shown a steady increase from 2013 to 2020, rising from 75% to 79%. This upward trend coincided with a significant surge in average home prices, which grew from $372,423 in 2013 to $643,251 in 2020, representing a substantial 72.7% increase. The relationship between homeownership rates and average home prices suggests that despite rising costs, more residents were able to enter the housing market during this period.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the increasing homeownership rates observed in zip code 89519, as it made mortgages more affordable for potential buyers. The peak homeownership rate of 79% in 2020 coincided with a very low federal interest rate of 0.38%, further illustrating this relationship.
Renter percentages in zip code 89519 have shown slight fluctuations, ranging from 18% in 2013 to 24% in 2022. Interestingly, average rent prices have not consistently followed these fluctuations. For instance, while the renter percentage increased from 20% in 2015 to 24% in 2022, average rent prices fluctuated, rising from $1,830 in 2015 to $2,031 in 2021, before slightly decreasing to $1,937 in 2022. The population in the zip code has also varied, reaching a low of 6,796 in 2016 and peaking at 7,811 in 2022, which may have influenced rental demand and prices.
In 2023 and 2024, average home prices in zip code 89519 showed a slight decline followed by a modest increase. The average home price in 2023 was $831,027, decreasing from the 2022 peak of $896,628. However, in 2024, prices rebounded slightly to $842,366. This period also saw a significant rise in federal interest rates, reaching 5.02% in 2023 and 5.33% in 2024, which may have impacted housing market dynamics.
Looking ahead, predictive models suggest that average home prices in zip code 89519 may continue to experience moderate growth over the next five years, potentially reaching around $950,000 by 2029. Average rent prices are also projected to increase, possibly surpassing $2,200 per month within the same timeframe. These predictions are based on historical trends and current market conditions.
In summary, zip code 89519 has demonstrated resilience in its housing market, with increasing homeownership rates and substantial growth in average home prices over the past decade. The area has navigated through periods of low interest rates, which likely boosted homeownership, and is now adapting to a higher interest rate environment. The rental market has shown more variability, with fluctuating renter percentages and average rent prices. As the area continues to evolve, it will be crucial to monitor how these housing trends develop in response to economic factors and local market conditions.
