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Average Home Values and Ownership in Zip Code 63845: East Prairie's Shifting Housing Market
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
East Prairie, located in zip code 63845 in Missouri, has experienced significant changes in its housing market over the past decade. This small city, with a population of 5,028 in 2022, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in East Prairie has shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate stood at 64%, but by 2022, it had decreased to 58%. This 6 percentage point drop coincided with a substantial increase in average home prices. In 2016, the earliest year for which home price data is available, the average home price was $62,931. By 2022, this figure had risen dramatically to $106,370, representing a 69% increase over six years.
The trend in homeownership rates appears to have been influenced by federal interest rates. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), the homeownership rate remained relatively stable at around 62-64%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, the homeownership rate declined. This inverse relationship suggests that higher interest rates may have made home purchases less affordable for some residents, contributing to the decrease in homeownership.
Renter occupancy in East Prairie has shown an upward trend, increasing from 36% in 2013 to 42% in 2022. This 6 percentage point rise mirrors the decline in homeownership. Concurrently, average rent prices have experienced significant fluctuations. In 2013, the average rent was $459, which rose to $625 by 2022, a 36% increase. Notably, there was a sharp increase in average rent from $498 in 2018 to $599 in 2019, a 20% jump in a single year. This substantial rise in rent prices, coupled with increasing home prices, may have made both renting and buying more challenging for residents, potentially contributing to the slight population decline from 5,432 in 2014 to 5,028 in 2022.
In 2023 and 2024, the housing market in East Prairie showed signs of stabilization. The average home price slightly decreased from $106,370 in 2022 to $105,618 in 2023, and further to $100,840 in 2024. This represents a 5.2% decrease over two years, possibly indicating a cooling in the local housing market. Interestingly, this occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to put downward pressure on home prices.
Looking ahead, based on the observed trends, we can project that average home prices in East Prairie may continue to stabilize or potentially decrease slightly over the next five years, especially if interest rates remain high. Average rent prices, which have shown a general upward trend, are likely to continue increasing, albeit at a more moderate pace. The rental market may see continued demand as homeownership becomes less accessible due to high interest rates and home prices.
In summary, East Prairie has experienced a shift towards renting, with declining homeownership rates and rising average home and rent prices over the past decade. The recent stabilization in home prices, despite high interest rates, suggests a potential cooling of the market. These trends reflect the complex interplay between economic factors, housing affordability, and demographic changes in this Missouri community.
