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Zip Code 89521 in Reno: Rising Home Values and Stable Ownership Amid Population Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 89521, located in Reno, Nevada, has experienced significant growth and changes in its housing market over the past decade. This area has seen a substantial increase in population, rising from 21,622 in 2010 to 39,137 in 2022, which has had a notable impact on homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 89521 has shown fluctuations but has generally remained strong. In 2013, the homeownership rate stood at 65%, and by 2022, it had increased slightly to 68%. This trend coincides with a dramatic rise in average home prices. In 2010, the average home price was $250,457, which more than doubled to $696,099 by 2022. This represents a 178% increase over 12 years, indicating a robust and growing housing market in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2010 to 2021, interest rates remained historically low, hovering between 0.08% and 2.16%. This period of low interest rates coincided with the rise in homeownership rates and home prices in zip code 89521. For instance, as interest rates dropped from 1.83% in 2018 to 0.08% in 2021, the homeownership rate increased from 64% to 69%, demonstrating how lower interest rates can encourage homeownership by making mortgages more affordable.
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Renter percentages in zip code 89521 have remained relatively stable, with some minor fluctuations. In 2013, the renter-occupied rate was 32%, and by 2022, it stood at the same percentage. However, average rent prices have shown a steady increase over time. In 2013, the average rent was $1,665, which rose to $1,725 by 2022, representing a 3.6% increase. This modest growth in rent prices, compared to the substantial increase in home prices, suggests that renting has remained a relatively affordable option in the area, potentially contributing to the stability of the renter percentage.
Looking at the most recent data, the average home price in zip code 89521 decreased slightly from $696,099 in 2022 to $647,766 in 2023, a 7% drop. However, it rebounded to $663,469 in 2024, showing a 2.4% increase from 2023. Concurrently, federal interest rates rose significantly from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This increase in interest rates may have contributed to the initial dip in home prices in 2023, as higher rates can make home purchases less affordable for some buyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 89521 will continue to rise, albeit at a more moderate pace than seen in the early 2020s. The average home price is projected to reach approximately $750,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $2,000 per month by 2029, reflecting the area's continued population growth and demand for housing.
In summary, zip code 89521 has demonstrated strong growth in both population and housing market values over the past decade. The area has maintained a high rate of homeownership despite significant increases in average home prices. The relationship between federal interest rates and homeownership rates has been evident, with lower rates generally corresponding to higher homeownership. While rent prices have increased, they have done so at a slower rate than home prices, helping to maintain a stable renter population. The recent uptick in interest rates and temporary dip in home prices suggest a potential market adjustment, but the overall trend remains positive for both homeowners and investors in this Reno, Nevada zip code.
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