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Average Home Values and Ownership in Zip Code 63134: Berkeley's Shifting Housing Landscape
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
Berkeley, located in Missouri with zip code 63134, has experienced significant shifts in its housing market over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in the area.
The homeownership rate in Berkeley has shown a notable decline from 2013 to 2022. In 2013, 54% of housing units were owner-occupied, but by 2022, this figure had dropped to 47%. Conversely, the percentage of renter-occupied units increased from 46% in 2013 to 53% in 2022. This shift towards renting coincided with a substantial increase in average home prices. The average home price in the area rose from $36,860 in 2013 to $96,227 in 2022, representing a 161% increase over nine years.
The relationship between federal interest rates and homeownership rates in Berkeley follows a generally inverse pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 54%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates declined more sharply, falling to 47% by 2018.
Regarding rental trends, the percentage of renter-occupied units increased from 46% in 2013 to 53% in 2022. This rise in renters corresponded with an overall increase in average rent prices, although the trend was not consistently upward. Average rent prices rose from $915 in 2013 to a peak of $1,006 in 2017, before fluctuating and settling at $923 in 2022. The population of Berkeley also fluctuated during this period, from 13,441 in 2013 to 13,073 in 2022, which may have influenced rental demand and prices.
In 2023 and 2024, the housing market in Berkeley continued to evolve. The average home price reached $100,241 in 2023 and further increased to $100,763 in 2024, showing continued growth in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability.
Looking ahead, based on the historical data and current trends, we can expect average home prices in Berkeley to continue rising, albeit at a potentially slower rate due to higher interest rates. A 5-year forecast suggests average home prices could reach approximately $120,000 by 2029. Average rent prices are likely to follow a similar upward trajectory, potentially reaching around $1,100 per month by 2029, assuming continued population stability and economic growth in the area.
In summary, Berkeley has witnessed a shift from homeownership to renting, accompanied by significant increases in average home prices. The inverse relationship between interest rates and homeownership rates is evident, with recent high interest rates potentially challenging future homeownership growth. The rental market has shown resilience with gradually increasing prices, reflecting the growing preference for renting in the area.
