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Average Home Values and Ownership in Zip Code 65612: Resilience Amidst Rising Prices in Rural 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 65612, located in Halltown, Missouri, has experienced notable shifts in its housing market dynamics over the past decade. This rural area has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 65612 has shown a slight decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 89%, which decreased to 84% by 2022. This trend coincided with a substantial increase in average home prices. In 2013, the average home price was $130,103, which rose dramatically to $308,545 by 2022, representing a 137% increase over nine years. This sharp rise in home prices may have contributed to the slight decline in homeownership, as affordability became an issue for some potential buyers.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 84-86%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a noticeable impact on homeownership. The rate dropped to its lowest point of 77% in 2017 before rebounding slightly to 84% in 2022, suggesting that higher interest rates may have initially deterred some buyers but the market eventually adjusted.
Renter percentages in zip code 65612 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter population grew from 11% in 2013 to 16% in 2022. Interestingly, average rent prices have been volatile during this period. In 2013, the average rent was $660, which peaked at $1,192 in 2014 before declining to $702 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the increasing renter population, suggesting that other factors, such as local economic conditions or housing supply, may have influenced rental rates more significantly.
Looking at the most recent data, 2023 saw average home prices in zip code 65612 reach $323,733, with a further increase to $332,814 in 2024. This continued upward trend in home prices occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates would typically be expected to cool the housing market, yet prices continued to climb, indicating strong demand or limited supply in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 65612 will continue to rise, albeit at a slower pace due to the higher interest rate environment. We project average home prices could reach approximately $380,000 by 2029. For rent prices, the forecast suggests a potential stabilization and gradual increase, possibly reaching an average of around $950 per month by 2029, assuming economic conditions remain relatively stable and housing supply keeps pace with demand.
In summary, zip code 65612 has experienced a slight decrease in homeownership rates coupled with a significant increase in average home prices over the past decade. Rent prices have been volatile but have not shown a consistent upward trend despite an increasing renter population. The area's housing market has demonstrated resilience, with home prices continuing to rise even in the face of higher interest rates. These trends suggest a complex interplay of factors influencing the local housing market, including potential supply constraints, changing demographics, and broader economic conditions.
