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Average Home Values and Ownership in Zip Code 63555: A Decade of Growth in Rural 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
Memphis, Missouri, zip code 63555, is a small city with a population that has fluctuated between 3,575 and 3,775 residents from 2010 to 2022. This area has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Memphis has shown a general upward trend, increasing from 69% in 2017 to 80% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2016, the average home price was $52,305, and by 2022, it had more than doubled to $112,437. This substantial appreciation in home values may have incentivized more residents to invest in homeownership, despite the potential challenges of affordability for some.
Federal interest rates have played a role in shaping homeownership trends in Memphis. The period from 2016 to 2022 saw relatively low interest rates, ranging from 0.4% to 1.68%. These low rates likely contributed to the increased homeownership by making mortgages more affordable. The jump in homeownership from 75% in 2020 to 78% in 2021 coincided with interest rates dropping to a mere 0.08% in 2021, potentially spurring more residents to take advantage of favorable borrowing conditions.
As homeownership rates increased, the percentage of renters in Memphis decreased from 31% in 2017 to 20% in 2022. Interestingly, average rent prices showed volatility during this period. The average rent rose from $590 in 2017 to a peak of $952 in 2019, before declining sharply to $489 in 2022. This decrease in rent prices, coupled with rising home values, may have further encouraged the shift towards homeownership.
In 2023 and 2024, the housing market in Memphis continued to evolve. The average home price increased slightly to $113,005 in 2023 and further to $115,094 in 2024. This represents a more modest growth rate compared to previous years, possibly influenced by the sharp rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have cooled the rapid appreciation seen in earlier years.
Looking ahead, predictive models suggest that average home prices in Memphis may continue to rise, but at a more moderate pace. Over the next five years, we might expect average home prices to reach around $125,000 to $130,000, assuming steady economic conditions and barring any major market disruptions. Average rent prices, which have been volatile, could stabilize and potentially increase slightly, possibly reaching $700 to $750 per month in the next five years, as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, Memphis, Missouri (63555) has experienced a significant shift towards homeownership, with rates increasing from 69% to 80% between 2017 and 2022. This trend has been accompanied by substantial appreciation in average home values, more than doubling from 2016 to 2022. The rental market has seen a corresponding decrease in the percentage of renters and fluctuations in average rent prices. Recent years have shown a moderation in home price growth and a sharp increase in interest rates, which may shape the housing market's trajectory in the coming years. The interplay between homeownership rates, home prices, and rental market dynamics will likely continue to evolve, influenced by both local factors and broader economic conditions.
