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Average Home Values and Ownership in Zip Code 63386: A Decade of Transformation in West Alton, Missouri
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 63386, located in West Alton, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has shown a notable increase in homeownership percentage, coupled with fluctuating average home and rent prices.
The ownership percentage in zip code 63386 has shown a clear upward trend, increasing from 75% in 2013 to 85% in 2022. This substantial rise in homeownership coincides with a dramatic increase in average home prices. In 2013, the average home price was $57,686, and by 2022, it had surged to $167,156, representing a remarkable 190% increase over nine years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 63386. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the steady increase in homeownership rates, from 75% to 80%. As interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), the homeownership rate continued to climb, reaching 85% in 2022. This suggests that despite rising interest rates, other factors were influencing the strong drive towards homeownership in this area.
The renter percentage in zip code 63386 has decreased significantly, from 24% in 2013 to 14% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. The average rent increased from $555 in 2013 to a peak of $998 in 2017, before declining to $535 in 2022. This fluctuation in rent prices, combined with the decreasing renter population, suggests a complex rental market influenced by various factors, including the overall population decline from 637 in 2013 to 553 in 2022.
In 2023 and 2024, the average home prices in zip code 63386 continued their upward trajectory, reaching $182,904 in 2023 and $191,521 in 2024. This represents a 15.4% increase from 2022 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, marking the highest rates since 2007. Despite these higher interest rates, the housing market in this zip code has remained robust, with continued price appreciation.
Looking ahead, based on the historical trends and current market conditions, we can expect the average home prices in zip code 63386 to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate would suggest an annual appreciation of 4-6%, which could lead to average home prices reaching approximately $230,000 to $250,000 by 2029. Rent prices, which have shown volatility, may stabilize or see modest increases, potentially reaching an average of $600 to $650 per month in the same timeframe.
In summary, zip code 63386 has demonstrated a strong trend towards homeownership, with a significant increase in both ownership percentage and average home prices over the past decade. Despite rising interest rates, the housing market has remained resilient, with continued price appreciation. The rental market has shown more volatility, with decreasing renter percentages and fluctuating rent prices. These trends paint a picture of a dynamic real estate market in West Alton, with a clear preference for homeownership among residents.
