Renter percentages in the area have shown a slight increase over time, moving from 10% in 2013 to 13% in 2022. This modest rise in renters coincided with an increase in average rent prices. In 2013, the average rent was $473, which climbed to $523 by 2022, marking a 10.6% increase over nine years. The population of the zip code has fluctuated, with 1,754 residents recorded in 2022, down from 1,933 in 2020. These population changes, combined with rising rent prices, suggest a tightening rental market despite the slight increase in the proportion of renters.

Looking at the most recent data, average home prices in zip code 62854 continued to rise, reaching $115,416 in 2023. However, there was a slight decrease to $114,164 in 2024, indicating a potential cooling in the housing market. This trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices by potentially reducing buyer demand.

Applying predictive models to forecast 5-year trends, we can anticipate continued but moderate growth in average home prices, likely at a slower pace than observed in recent years due to higher interest rates. Average rent prices are expected to continue their upward trajectory, potentially at a rate slightly above inflation, driven by the gradual increase in the renter population and overall housing costs.

In summary, zip code 62854 has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has maintained a strong preference for homeownership despite rising home prices, likely supported by favorable interest rates in previous years. Recent increases in interest rates may moderate future home price growth, while the rental market shows signs of gradual expansion with rising average rents. These trends reflect the dynamic nature of the local housing market and its responsiveness to broader economic factors.