Loading Content...
Average Home Values and Ownership in Zip Code 65560: A Decade of Growth in Salem, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 65560, located in Salem, Missouri, presents an intriguing case study of homeownership and rental trends over the past decade. This area has experienced notable fluctuations in both ownership percentages and housing prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 65560 has remained relatively stable, with slight variations over the years. In 2013, the ownership rate stood at 73%, and after some fluctuations, it returned to 73% in 2022. During this period, average home prices in the area saw a significant upward trend. In 2012, the average home price was $79,495, and by 2022, it had more than doubled to $164,672, representing a 107% increase over a decade.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates actually decreased slightly from 73% to 71%. This suggests that other local factors may have had a stronger influence on homeownership than interest rates alone during this period.
Renter percentages in zip code 65560 have shown minor fluctuations, generally inverse to the homeownership trends. The renter population peaked at 30% in 2017 and 2018, coinciding with a period when average rent prices were increasing. Average rent prices rose from $594 in 2013 to $642 in 2020, an 8% increase. However, it's worth noting that the population decreased from 14,510 in 2013 to 14,015 in 2020, which may have influenced rental market dynamics.
Looking at more recent data, the average home price in zip code 65560 continued its upward trajectory, reaching $173,986 in 2023 and $177,905 in 2024. This represents a 6% increase from 2022 to 2023 and a further 2.3% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 65560 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $200,000 to $220,000, assuming a more moderate annual growth rate of 2-4%. For average rent prices, we expect a continued upward trend, potentially reaching $700-$750 per month by 2029, based on historical patterns and accounting for inflation and local market conditions.
In summary, zip code 65560 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has experienced substantial property value appreciation, with home prices more than doubling over a decade. While rental rates have shown more stability, they too have seen an upward trend. The recent sharp increase in interest rates may pose challenges for future homeownership accessibility, potentially leading to a more competitive rental market in the coming years.
