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Average Home Values and Ownership in Zip Code 64050: A Decade of Significant Shifts
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 64050, located in Independence, Missouri, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has seen a notable trend towards renting, with average home prices steadily increasing despite fluctuations in the homeownership rate.
The homeownership percentage in zip code 64050 has shown a general decline from 2013 to 2022. In 2013, 58% of residents were homeowners, but by 2022, this figure had decreased to 49%. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $50,620, which rose dramatically to $149,289 by 2022, representing a 195% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were relatively low in 2013 at 0.11%, the homeownership rate was at 58%. As interest rates began to rise, reaching 1.83% in 2018, the homeownership rate dropped to 50%. This trend suggests that higher interest rates may have contributed to the decline in homeownership, as mortgage financing became more expensive.
Conversely, the percentage of renters in zip code 64050 has increased from 42% in 2013 to 51% in 2022. This shift towards renting is reflected in the average rent prices, which have also seen an upward trend. In 2013, the average rent was $782, rising to $818 in 2022, an increase of 4.6%. It's worth noting that the population in this zip code has remained relatively stable during this period, fluctuating between 21,526 and 22,217 residents, suggesting that the increase in renting is not solely due to population growth but rather a shift in housing preferences or affordability.
Looking at the most recent data, the average home price in zip code 64050 reached $160,725 in 2023 and further increased to $167,841 in 2024. This continued upward trend in home prices occurs despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher rates compared to the previous decade.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64050 will continue to rise, albeit at a potentially slower rate due to the higher interest rates. We project that by 2029, average home prices could reach approximately $200,000 to $220,000. For rent prices, the forecast suggests a continued gradual increase, potentially reaching an average of $950 to $1,000 per month by 2029.
In summary, zip code 64050 has witnessed a significant shift from homeownership to renting over the past decade, coupled with substantial increases in average home prices. Despite rising interest rates, home prices have continued to climb, while rent prices have seen more modest growth. These trends reflect changing housing dynamics in the area, potentially influenced by factors such as affordability, economic conditions, and shifting preferences among residents.
