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Average Home Values and Ownership in Zip Code 39520: A Decade of Growth in Bay St. Louis, Mississippi
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 39520, located in Bay St. Louis, Mississippi, has experienced significant changes in homeownership rates and housing prices over the past decade. This coastal community has shown resilience and growth, with notable shifts in its real estate landscape.
The ownership percentage in zip code 39520 has shown a strong upward trend, increasing from 65% in 2013 to 73% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2012, the average home price was $103,544, which steadily climbed to $248,467 by 2022, representing a remarkable 140% increase over a decade. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased local prosperity.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in the area remained relatively stable. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates also increased from 62% to 67%. This counterintuitive trend might be explained by residents rushing to purchase homes before rates increased further, or by overall economic growth in the area.
Renter percentages in zip code 39520 have shown an inverse relationship to homeownership rates, decreasing from 34% in 2013 to 26% in 2022. Interestingly, average rent prices have increased during this period, rising from $844 in 2013 to $916 in 2022. This trend suggests that while fewer people are renting, those who do are paying higher prices. The population growth from 16,790 in 2013 to 16,819 in 2022 indicates a relatively stable population, which may have contributed to the steady increase in both home values and rent prices.
In 2023 and 2024, the housing market in zip code 39520 showed signs of stabilization. The average home price slightly decreased to $241,849 in 2023 but rebounded to $246,454 in 2024. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the slight cooling in home prices, as higher borrowing costs typically reduce buyer demand.
Looking ahead, predictive models suggest that average home prices in zip code 39520 may continue to rise moderately over the next five years, potentially reaching around $275,000 by 2029. Rent prices are also expected to increase, possibly surpassing $1,000 per month on average within the same timeframe. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 39520 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in the face of changing interest rates and economic conditions, with a consistent upward trajectory in both homeownership rates and housing prices. The slight moderation in home prices observed in 2023-2024 suggests a maturing market, while the overall trend points to continued growth and stability in this coastal Mississippi community.
