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Average Home Values and Ownership in Zip Code 63621: Arcadia's Housing Market Transformation
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 63621, located in Arcadia, Missouri, has experienced significant fluctuations in population and housing dynamics over the past decade. This area has seen a notable shift in homeownership rates and housing prices, reflecting broader economic trends and local market conditions. The ownership percentage in zip code 63621 has shown an overall increasing trend, rising from 63% in 2016 to 78% in 2022. This substantial growth in homeownership coincides with a dramatic increase in average home prices. In 2016, the average home price was $109,351, which steadily climbed to $180,703 by 2022, representing a 65% increase over six years. This trend suggests a strong correlation between rising home values and increased homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 63621. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely contributed to the increase in homeownership from 63% to 72% during this time. The exceptionally low rate of 0.08% in 2021 coincided with a further jump in homeownership to 75%, demonstrating how favorable financing conditions can drive property purchases.
Renter percentages in zip code 63621 have inversely mirrored the homeownership trend, decreasing from 36% in 2016 to 22% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent rose from $444 in 2016 to $563 in 2021, a 27% increase, before dropping to $524 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market potentially influenced by factors such as local economic conditions and housing availability.
In 2023 and 2024, the average home prices in zip code 63621 continued to rise, albeit at a slower pace. The average home price reached $181,583 in 2023 and further increased to $182,149 in 2024. This represents a modest growth of 0.8% from 2022 to 2024, indicating a potential stabilization in the housing market. Notably, federal interest rates sharply increased to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slowing appreciation of home values.
Looking ahead, predictive models suggest a continued but moderate increase in average home prices for zip code 63621 over the next five years. Based on historical trends and current market conditions, average home prices could potentially reach around $200,000 by 2029. Rent prices are also expected to follow an upward trajectory, potentially reaching an average of $600-$650 per month in the same timeframe, assuming consistent economic growth and demand for rental properties in the area.
In summary, zip code 63621 has experienced a significant shift towards homeownership, accompanied by substantial increases in property values over the past decade. The interplay between federal interest rates, home prices, and rental markets has shaped a dynamic housing landscape in this Missouri community. As the area moves forward, it appears poised for continued, albeit more moderate, growth in both home values and rental prices, reflecting a maturing and potentially stabilizing local real estate market.
