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Average Home Values and Ownership in Zip Code 64052: A Decade of Significant Changes
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 64052, located in Independence, Missouri, has experienced significant demographic and housing market changes over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 64052 has shown a gradual decline from 2013 to 2022. In 2013, 61% of residents were homeowners, but by 2022, this figure had decreased to 56%. Concurrently, average home prices have seen a substantial increase. In 2013, the average home price was $47,607, but by 2022, it had risen dramatically to $142,265, representing a 198.8% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 64052. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable at around 59-61%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 56%. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in zip code 64052 has also experienced notable changes. The percentage of renters increased from 39% in 2013 to 44% in 2022, inversely mirroring the decline in homeownership. Average rent prices have shown some volatility but generally trended upward. In 2013, the average rent was $937, which increased to $1,033 in 2017, before settling at $937 again in 2022. The population growth from 21,051 in 2013 to 21,536 in 2022 may have contributed to the increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 64052 continued to evolve. The average home price rose to $152,037 in 2023 and further increased to $160,533 in 2024, representing a 12.8% increase over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 64052 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, driven by ongoing demand for rental properties and overall market appreciation.
In summary, zip code 64052 has witnessed a shift towards renting, with homeownership rates declining as average home prices have significantly increased. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. As the area continues to evolve, balancing housing affordability with market growth will likely remain a key challenge for this Independence, Missouri community.
