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Average Home Values and Ownership in Zip Code 64056: A Decade of Change in Independence, Missouri
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 64056, located in Independence, Missouri, has experienced significant shifts in homeownership, housing prices, and rental markets over the past decade. This area has seen a gradual transition from a predominantly owner-occupied community to one with an increasing renter population, alongside substantial growth in both average home values and average rent prices.
The homeownership rate in zip code 64056 has shown a steady decline from 2013 to 2022. In 2013, 70% of housing units were owner-occupied, but by 2022, this figure had dropped to 61%. This 9% decrease in homeownership coincided with a remarkable increase in average home prices. In 2013, the average home price was $83,577, which more than doubled to $198,098 by 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents, potentially contributing to the shift towards renting.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, which typically encourages homebuying. During this period, homeownership rates in zip code 64056 remained relatively stable at around 69-70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, dropping from 69% in 2017 to 61% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially deterring potential homebuyers.
As homeownership declined, the percentage of renters in zip code 64056 increased from 30% in 2013 to 39% in 2022. This 9% rise in the renter population corresponded with a significant increase in average rent prices. In 2013, the average rent was $1,053, which grew to $1,109 by 2022, representing a 5.3% increase. The population in the zip code also grew during this period, from 17,035 in 2013 to 18,383 in 2022, potentially contributing to increased demand for rental properties and subsequent rent price increases.
Looking at the most recent data, the average home price in zip code 64056 continued its upward trajectory, reaching $209,798 in 2023 and further increasing to $217,612 in 2024. This represents a 9.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen dramatically, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may further challenge potential homebuyers in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64056 will continue to rise, potentially reaching around $250,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,300 by 2029, assuming the trend of gradual increases continues.
In summary, zip code 64056 has undergone significant changes in its housing market dynamics. The area has seen a shift from homeownership to renting, with average home prices more than doubling and average rent prices steadily increasing. The interplay between rising property values, changing interest rates, and population growth has reshaped the housing landscape in this Independence, Missouri community. As we look to the future, the trends suggest continued growth in both home values and rental prices, potentially further impacting the balance between homeowners and renters in the area.
