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Average Home Values and Ownership in ZIP Code 63147: 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 63147, located in St. Louis, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 63147 has shown a notable trend over the years. In 2013, the area had a high homeownership rate of 61%. However, this rate gradually declined to 52% by 2019 and 2020. Interestingly, there has been a slight uptick in recent years, with homeownership reaching 56% in 2022. This trend coincides with changes in average home prices. In 2013, the average home price was $42,928, which decreased to a low of $32,179 in 2014. Since then, average home prices have steadily increased, reaching $65,771 in 2022. This represents a substantial 104% increase from the 2014 low, indicating a strong recovery in the local housing market.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. As interest rates remained low between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates declined from 61% to 53%. This counterintuitive trend suggests that other local factors may have had a stronger influence on homeownership than interest rates during this period. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates stabilized and even showed a slight increase, possibly due to buyers rushing to purchase homes before rates climbed further.
Renter percentages in zip code 63147 have generally mirrored the inverse of homeownership rates. The percentage of renters increased from 39% in 2013 to a peak of 48% in 2019 and 2020, before slightly decreasing to 44% in 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $807, which increased to $847 in 2017. However, rent prices then experienced a decline, reaching $778 in 2020, before rising again to $776 in 2022. These fluctuations in rent prices may be influenced by changes in the local population, which decreased from 12,821 in 2010 to 8,216 in 2022, potentially affecting demand for rental properties.
Looking at the most recent data, the average home price in zip code 63147 for 2023 was $64,162, showing a slight decrease from 2022. In 2024, the average home price has remained relatively stable at $64,153. This stability comes despite 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.
Based on the historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 63147. Average home prices may continue to show moderate growth, potentially reaching around $70,000-$75,000 by 2029, assuming economic conditions remain stable and local revitalization efforts continue. Average rent prices might see a gradual increase, potentially reaching $850-$900 per month by 2029, driven by inflation and possible improvements in local amenities.
In summary, zip code 63147 has experienced a recovery in its housing market since 2014, with increasing average home prices and a recent uptick in homeownership rates. The rental market has shown more volatility, with fluctuating rent prices and renter percentages. The area's declining population and changing economic conditions have played significant roles in shaping these trends. Moving forward, the housing market in this zip code may continue to evolve, influenced by broader economic factors and local development initiatives.
