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Average Home Values and Ownership in Zip Code 64863: Southwest City'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
Southwest City, located in zip code 64863 in Missouri, has experienced fluctuating trends in homeownership rates and housing prices over the past decade. This small town has shown resilience in its real estate market, with notable shifts in ownership percentages and rental prices.
The ownership percentage in Southwest City has shown an overall upward trend from 2013 to 2022. In 2013, the homeownership rate was 48%, which increased to 59% by 2022. This significant rise of 11 percentage points indicates a growing preference for homeownership in the area. Interestingly, the peak ownership rate was observed in 2018 at 63%, followed by some fluctuations in subsequent years.
Federal interest rates have played a role in influencing homeownership trends in Southwest City. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates increased from 48% to 54%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, homeownership continued to climb, peaking at 63% in 2018. This suggests that while low interest rates initially encouraged homeownership, other local factors may have sustained the trend even as rates increased.
Renter percentages in Southwest City have generally decreased as homeownership rates increased. In 2013, 52% of the population were renters, which decreased to 41% by 2022. The average rent prices, however, have shown an upward trend. In 2013, the average rent was $534, which increased to $589 by 2022, representing a 10.3% increase over nine years. The highest average rent was recorded in 2019 at $645, coinciding with a period of lower renter occupancy (42%).
Looking at the most recent data, the average home price in Southwest City for 2023 was $156,190, and it increased to $158,355 in 2024. This represents a modest growth of 1.39% in just one year. The federal interest rate in 2023 was 5.02%, rising slightly to 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in Southwest City to continue their gradual upward trajectory. Based on the recent growth rate, average home prices could potentially reach around $170,000 by 2029. For average rent prices, if the trend of the past decade continues, we might see them approach or slightly exceed $650 by 2029.
In summary, Southwest City has demonstrated a shift towards increased homeownership over the past decade, with a corresponding decrease in renter occupancy. Despite fluctuations in federal interest rates, the local real estate market has shown resilience, with both average home prices and rent prices showing modest but steady growth. The coming years are likely to see continued appreciation in property values and rental rates, albeit at a moderate pace, reflecting the stable nature of this small Missouri town's housing market.
