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Average Home Values and Ownership in Zip Code 63113: A Decade of Change in St. Louis
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 63113, located in St. Louis, Missouri, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has seen a notable increase in homeownership, coupled with fluctuating average home and rent prices, reflecting the dynamic nature of its real estate market.
The trend between ownership percentage and average home prices in zip code 63113 shows an interesting correlation. In 2013, the homeownership rate was 40%, and by 2022, it had increased to 49%. During this period, average home prices also saw a substantial rise. From 2016 to 2022, average home prices increased from $45,708 to $64,335, a 40.8% increase. This upward trend in both homeownership and home prices suggests a growing demand for property ownership in the area, despite rising costs.
Federal interest rates have played a significant role in homeownership trends in zip code 63113. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable at around 38-40%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates also increased, reaching 44% by 2019. This counterintuitive trend suggests that other local factors may have been influential in driving homeownership in this zip code.
Renter percentages and average rent prices in zip code 63113 have shown an inverse relationship. In 2013, 60% of residents were renters, with an average rent of $829. By 2022, the percentage of renters had decreased to 51%, while the average rent had dropped to $747. This decrease in both renter percentage and average rent prices could be attributed to the area's declining population, which fell from 12,178 in 2013 to 11,020 in 2022. The reduced demand for rentals may have contributed to the lower average rent prices.
In 2023 and 2024, zip code 63113 experienced a shift in the housing market. The average home price decreased from $64,335 in 2022 to $55,648 in 2023, and further to $55,447 in 2024. This represents a 13.8% decrease over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the cooling of home prices in the area.
Looking ahead, based on the current trends, we can forecast the following for zip code 63113 over the next five years: 1. Average home prices are likely to stabilize or show modest growth, potentially reaching around $60,000 by 2029. 2. Average rent prices may continue to fluctuate but are expected to remain in the $750-$850 range, assuming the population remains relatively stable. 3. Homeownership rates could continue to increase slightly, potentially reaching 52-55% by 2029, if the current trend persists.
In summary, zip code 63113 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The area has seen a shift from a predominantly renter-occupied market to a more balanced owner-renter mix. The recent cooling of home prices, coupled with high interest rates, suggests a potential stabilization of the market. These trends indicate a changing landscape in this St. Louis neighborhood, with implications for both current and future residents.
