Loading Content...
Average Home Values and Ownership in Zip Code 63556: A Decade of Stability Amidst Rising Prices
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 63556, located in Milan, Missouri, has demonstrated a resilient housing market over the past decade. This area has experienced notable trends in homeownership rates and property values, reflecting the dynamic nature of its real estate landscape. The homeownership rate in zip code 63556 has remained relatively stable, with minor fluctuations over the years. In 2013, the homeownership rate stood at 67%, increasing to 70% by 2019. This trend coincided with a significant appreciation in average home prices. From 2018 to 2022, average home prices in the area rose from $63,064 to $95,021, representing a substantial 50.7% increase over four years. This appreciation in home values likely contributed to the sustained high levels of homeownership in the area.
Federal interest rates have played a significant role in homeownership trends in zip code 63556. The period from 2013 to 2020 was characterized by historically low interest rates, ranging from 0.09% to 2.16%. These low rates likely supported the high homeownership rates observed during this time, as they made mortgage financing more accessible for potential buyers. The slight decrease in homeownership from 70% in 2019 to 69% in 2020 may be attributed to the economic uncertainty at the onset of the COVID-19 pandemic, despite interest rates dropping to 0.38% in 2020.
Renter percentages in zip code 63556 have shown a complementary trend to homeownership rates. In 2013, the renter-occupied rate was 33%, which decreased to 30% by 2019. Average rent prices have fluctuated over the years, with some correlation to renter percentages. In 2013, the average rent was $629, which decreased to $577 by 2015 when the renter percentage was 31%. As the renter percentage stabilized around 30-32% from 2016 to 2022, average rent prices gradually increased, reaching $653 in 2022. This suggests that as the rental market stabilized, landlords were able to implement moderate rent increases.
Examining the most recent data, average home prices in zip code 63556 reached $90,108 in 2023 and slightly decreased to $89,654 in 2024. This represents a 5.2% decrease from the peak price of $95,021 in 2022. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slight cooling of home prices.
Based on the observed trends, the following forecasts can be made for the next five years: 1. Average home prices may experience moderate growth, potentially reaching around $100,000 to $105,000 by 2029, assuming economic conditions remain stable and interest rates do not increase dramatically. 2. Average rent prices are likely to continue their gradual upward trend, potentially reaching $700 to $725 per month by 2029, reflecting ongoing demand for rental properties in the area.
In conclusion, zip code 63556 has maintained a strong homeownership rate despite fluctuations in the housing market. The area has seen significant appreciation in home values, particularly from 2018 to 2022. Rent prices have shown more modest increases, with some correlation to renter percentages. The recent cooling of home prices in 2023 and 2024, coupled with rising interest rates, suggests a potential stabilization of the market. Moving forward, both home prices and rent prices are expected to show moderate growth, barring any major economic shifts.
