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Average Home Values and Ownership in Zip Code 64054: Sugar Creek's Resilient 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
Zip code 64054, located in Sugar Creek, Missouri, presents an intriguing landscape of homeownership and rental dynamics over the past decade. This area has experienced notable fluctuations in both ownership percentages and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 64054 has shown a slight overall increase from 54% in 2019 to 59% in 2022, despite some fluctuations in between. This trend coincides with a significant rise in average home prices, which have more than doubled from $54,606 in 2010 to $127,241 in 2022. The most dramatic increase occurred between 2020 and 2022, with average home prices jumping from $89,745 to $127,241, a 41.8% increase in just two years.
Federal interest rates appear to have played a role in homeownership trends in this area. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, coincided with the gradual increase in homeownership rates. This relationship is particularly evident in the years leading up to 2022, where the homeownership rate reached 59% as interest rates remained low, making mortgages more affordable for potential buyers.
Renter percentages in zip code 64054 have fluctuated inversely to homeownership rates, decreasing from 46% in 2019 to 41% in 2022. Interestingly, average rent prices have shown an overall upward trend, rising from $787 in 2019 to $877 in 2022, with a peak of $1,007 in 2021. This increase in rent prices, despite a decreasing renter population, could be attributed to factors such as improved rental property quality or a shortage of available rental units.
In 2023 and 2024, the housing market in zip code 64054 continued its upward trajectory. Average home prices reached $138,964 in 2023 and further increased to $145,931 in 2024, representing a 14.7% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some buyers.
Looking ahead, predictive models suggest a continuation of the upward trend in both average home prices and rent prices over the next five years. Based on historical data and current market conditions, average home prices in zip code 64054 could potentially reach $170,000 to $180,000 by 2029. Average rent prices may also continue to rise, potentially reaching $950 to $1,000 per month in the same timeframe.
In summary, zip code 64054 has demonstrated resilience and growth in its housing market. The area has seen a steady increase in homeownership rates alongside rising home values, even in the face of recent interest rate hikes. The rental market, while experiencing some fluctuations, has also shown an overall upward trend in prices. These trends suggest a robust and dynamic real estate environment in Sugar Creek, with potential for continued growth and investment opportunities in the coming years.
