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Average Home Values and Ownership in Zip Code 65043: A Decade of Growth in Holts 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 65043, located in Holts Summit, Missouri, presents an interesting case study in housing dynamics. This area has seen notable shifts in homeownership rates and property values over the past decade. The overall trend shows an increase in homeownership percentage, coupled with a significant rise in average home prices and fluctuating average rent prices.
The homeownership rate in zip code 65043 has shown a general upward trend, increasing from 74% in 2019 to 82% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2019, the average home price was $182,421, which rose to $244,446 by 2022, representing a 34% increase over just three years. This trend suggests that despite rising prices, more residents in the area were able to transition into homeownership.
Federal interest rates have played a significant role in shaping homeownership trends. From 2019 to 2021, interest rates dropped dramatically from 2.16% to 0.08%, which likely contributed to the increase in homeownership from 74% to 83% during this period. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. However, it's worth noting that despite rising interest rates in 2022 (1.68%), homeownership remained high at 82%, indicating other factors may be at play in this zip code's housing market.
The renter percentage in zip code 65043 has fluctuated over the years, showing an inverse relationship with homeownership rates. In 2019, the renter percentage was 22%, which decreased to 18% by 2022. Interestingly, average rent prices have not shown a consistent trend during this period. In 2019, the average rent was $884, which decreased to $855 in 2022, a 3.3% drop. This decrease in average rent, coupled with the declining renter percentage, suggests that more residents may have transitioned from renting to owning during this period.
Looking at the most recent data, the average home price in zip code 65043 continued to rise in 2023, reaching $245,216. This represents a slight increase of 0.3% from 2022. In 2024, the average home price further increased to $249,985, a 1.9% rise from 2023. Notably, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, albeit at a slower pace than in previous years.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 65043 to continue their upward trajectory, albeit at a more moderate pace. Given the recent slowdown in price appreciation and higher interest rates, we might anticipate average home prices to increase by approximately 2-3% annually over the next five years. For average rent prices, the forecast suggests a potential stabilization or slight increase, possibly in the range of 1-2% annually, as the market adjusts to changing homeownership rates and economic conditions.
In summary, zip code 65043 has experienced a notable increase in homeownership rates and average home prices over the past decade. The area has shown resilience in maintaining high homeownership levels even as interest rates have risen. The inverse relationship between homeownership and renter percentages, coupled with fluctuating rent prices, suggests a dynamic housing market responsive to economic conditions and local factors. As we look to the future, moderate growth in both home prices and rent can be expected, reflecting the area's continued attractiveness to residents and potential homebuyers.
