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64742 Zip Code in Drexel, Missouri: Rising Home Values and Shifting Ownership Trends
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 64742, located in Drexel, Missouri, has experienced notable shifts in homeownership rates and property values over the past decade. This area has shown resilience in maintaining a high percentage of owner-occupied housing while navigating fluctuating average home prices and rent costs.
The homeownership rate in zip code 64742 has demonstrated a general upward trend, increasing from 75% in 2013 to 79% in 2022. This rise in homeownership coincided with a significant increase in average home prices, which grew from $123,335 in 2013 to $276,731 in 2022, representing a 124% increase over this period. The trend suggests a strong correlation between rising home values and increased homeownership, possibly indicating growing confidence in the local real estate market.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial rise in homeownership from 75% to 76%. As interest rates began to climb more steeply from 2017 (1%) to 2019 (2.16%), homeownership in the area continued to increase, reaching 82% by 2019. This suggests that other local factors, such as job growth or community development, may have offset the potential negative impact of rising interest rates on homeownership.
Renter percentages in zip code 64742 have inversely mirrored the homeownership trend, decreasing from 25% in 2013 to 21% in 2022. Interestingly, average rent prices have shown volatility during this period. From 2013 to 2022, average rent prices fluctuated, starting at $976 in 2013, dropping to $858 in 2014, then rising to a peak of $1,015 in 2020 before settling at $990 in 2022. Despite these fluctuations, the overall trend shows a modest increase in average rent prices, which may have contributed to the shift towards homeownership for some residents.
Looking at the most recent data, average home prices in zip code 64742 experienced a slight dip from $276,731 in 2022 to $275,864 in 2023, followed by a modest increase to $282,234 in 2024. This recent trend occurs against the backdrop of significantly higher interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may impact future homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64742 will continue to rise, albeit at a more moderate pace than seen in the previous decade. The average home price is projected to reach approximately $310,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially increasing to around $1,100 per month in the same timeframe.
In summary, zip code 64742 has demonstrated a robust housing market characterized by increasing homeownership rates and property values over the past decade. The area has shown resilience in the face of fluctuating interest rates and economic conditions. While recent data suggests a potential cooling in the rapid price growth, the overall trend remains positive for both homeowners and investors in this Missouri community.
