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Average Home Values and Ownership in Zip Code 64082: A Decade of Change in Lee's Summit, 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 64082, located in Lee's Summit, Missouri, has experienced significant demographic and housing market changes over the past decade. This area has seen a steady increase in population and notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 64082 has shown a slight decline over the years, dropping from 90% in 2013 to 85% in 2022. During this same period, average home prices have demonstrated a strong upward trend. In 2013, the average home price was $237,581, which increased to $433,081 by 2022, representing an impressive 82% growth over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained stable at 90%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a gradual decline in homeownership rates. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 64082 has increased from 8% in 2013 to 15% in 2022, nearly doubling over the decade. Correspondingly, average rent prices have also risen, though not as dramatically as home prices. In 2013, the average rent was $1,455, which increased to $1,734 by 2022, a 19% increase. This growth in both renter population and rent prices could be attributed to the area's overall population growth, which rose from 13,477 in 2013 to 16,913 in 2022, a 25.5% increase. The rising population may have created more demand for rental properties, driving up both occupancy rates and prices.
Looking at the most recent data, average home prices in zip code 64082 continued to rise in 2023 and 2024, reaching $439,519 and $447,966 respectively. This represents a modest increase of 3.4% from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rate of home price appreciation in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64082 will continue to rise, albeit at a more moderate pace. Given the recent slowdown in price appreciation and higher interest rates, we project average home prices could reach approximately $495,000 by 2029. For average rent prices, considering the consistent upward trend and increasing renter population, we estimate they could climb to around $2,000 per month in the next five years.
In summary, zip code 64082 has experienced a significant increase in population and average home prices over the past decade, accompanied by a slight decline in homeownership rates. The rental market has grown, with both the percentage of renters and average rent prices increasing. Recent rises in interest rates may impact future housing market dynamics, potentially moderating home price growth and affecting homeownership rates in the coming years.
