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Average Home Values and Ownership in Zip Code 63111: A Decade of Growth Amidst Market Fluctuations
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 63111, located in St. Louis, Missouri, has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of decreasing homeownership, rising average home prices, and increasing average rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 63111 has shown a slight overall decline from 2013 to 2022. In 2013, the homeownership rate was 41%, which decreased to 39% by 2022. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $64,104, which rose dramatically to $116,802 by 2022, representing an 82% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate in the zip code remained relatively stable, hovering around 39-41%. However, as interest rates began to rise more substantially from 2017 onwards, reaching 1.68% by 2022, the homeownership rate showed slight fluctuations but generally remained in the 37-41% range. This suggests that while low interest rates may have helped maintain homeownership levels, other factors such as rapidly increasing home prices likely counteracted some of the positive effects of affordable financing.
The renter population in zip code 63111 has generally increased as homeownership rates declined. In 2013, 59% of residents were renters, which increased to 61% by 2022. This trend coincided with rising average rent prices. The average rent in 2013 was $744, which increased to $757 by 2022, representing a modest 1.7% increase over the period. Interestingly, rent prices peaked in 2018 at $859 before declining slightly in subsequent years. The population of the zip code has fluctuated over this period, with 20,445 residents in 2013, peaking at 21,938 in 2015, and then decreasing to 19,622 by 2022. These population changes may have influenced rental demand and pricing trends.
In 2023 and 2024, average home prices in zip code 63111 continued to rise, reaching $118,750 in 2023 and $119,477 in 2024. This represents a modest increase of 2.3% from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 63111. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach approximately $130,000 to $135,000 by 2029. Average rent prices, which have shown more volatility, may continue to increase moderately, potentially reaching around $800 to $850 per month by 2029, assuming economic conditions remain stable and housing demand in the area persists.
In summary, zip code 63111 has experienced a gradual shift towards a renter-majority population, with homeownership rates declining slightly as average home prices have risen substantially. Average rent prices have shown more modest increases, with some fluctuations. The interplay between federal interest rates, housing prices, and local economic factors will continue to shape the residential landscape of this St. Louis zip code in the coming years.
