Loading Content...
Average Home Values and Ownership in Zip Code 63448: La Grange's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
La Grange, Missouri, located in zip code 63448, has experienced significant changes in homeownership and housing market dynamics over the past decade. This analysis examines the trends in ownership rates, average home prices, and average rent prices, providing insights into the local real estate landscape.
The homeownership rate in La Grange has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 74%, and it gradually rose to 82% by 2018, maintaining this level through 2022. This significant increase of 8 percentage points over five years indicates a strong trend towards homeownership in the area.
Average home prices in La Grange have shown fluctuations in recent years. In 2021, the average home price was $141,637, which increased to $148,963 in 2022, representing a 5.2% rise. This upward trend in home prices coincided with the stable homeownership rate of 82%, suggesting that despite rising prices, residents continued to prioritize homeownership.
The relationship between federal interest rates and homeownership rates in La Grange appears to follow the general trend observed nationally. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate in the area increased. This aligns with the principle that lower interest rates typically encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in La Grange decreased from 26% in 2013 to 18% in 2018, remaining stable through 2022. This decline in the renter population coincided with fluctuations in average rent prices. The average rent peaked at $674 in 2013, decreased to $618 in 2017, and then rose again to $669 in 2022. Despite these fluctuations, the consistent decrease in the renter population suggests that more residents were transitioning to homeownership, possibly due to favorable market conditions and low interest rates.
In 2023 and 2024, La Grange experienced some changes in its housing market. The average home price decreased slightly to $142,623 in 2023 but rebounded to $145,836 in 2024. This represents a modest 2.3% increase from 2023 to 2024. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, based on the observed trends and current market conditions, we can anticipate the following 5-year forecast for La Grange: Average home prices are likely to continue a moderate upward trend, potentially reaching around $155,000 to $160,000 by 2029. Average rent prices may stabilize or increase slightly, possibly reaching $700 to $725 per month by 2029. The homeownership rate might plateau or experience a slight decrease due to higher interest rates, potentially settling around 78-80% by 2029.
In summary, La Grange has demonstrated a strong preference for homeownership, with a significant increase in the homeownership rate from 2013 to 2022. Despite fluctuations in average home prices and rent, the community has maintained a high proportion of homeowners. However, the recent rise in interest rates may pose challenges to this trend in the coming years, potentially leading to a stabilization or slight decrease in homeownership rates and a moderate increase in both home prices and rent.
