Loading Content...
Average Home Values and Ownership in Zip Code 65668: Hermitage, Missouri's Resilient Housing Market
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 65668, encompassing Hermitage, Missouri, presents an intriguing case study of real estate dynamics in a small Midwestern community. Over the past decade, this area has experienced notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The ownership percentage in zip code 65668 has remained relatively stable, with a slight increase from 83% in 2013 to 84% in 2022. This high rate of homeownership coincides with a significant rise in average home prices. In 2016, the average home price was $100,573, which steadily increased to $189,706 by 2022, representing an impressive 88.6% growth over six years. This trend suggests a strong local housing market, with property values appreciating substantially despite the high proportion of owner-occupied homes.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 65668. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which likely contributed to the sustained high levels of homeownership. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate still increased slightly from 85% to 86%, indicating a resilient local market. The sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) may have further supported homeownership, although the rate remained stable at 84% in 2022.
The renter population in zip code 65668, while a minority, has also experienced notable changes. The percentage of renters decreased slightly from 17% in 2013 to 16% in 2022. Interestingly, average rent prices have shown significant volatility. In 2013, the average rent was $547, which decreased to $511 by 2016. However, from 2017 to 2021, average rent prices surged from $518 to $789, a substantial 52.3% increase. This trend occurred despite a declining population, from 3,083 in 2017 to 2,366 in 2021, suggesting that other factors, such as limited rental supply or improved rental property quality, may have driven up prices.
Looking at the most recent data, the average home price in zip code 65668 slightly decreased from $189,706 in 2022 to $188,985 in 2023, marking a marginal 0.4% decline. However, in 2024, the average home price has rebounded to $192,058, representing a 1.6% increase from 2023. This recent uptick occurs against the backdrop of higher federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting affordability and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices, albeit at a more moderate pace than seen in recent years. The average home price in zip code 65668 is projected to reach approximately $220,000 by 2029, representing a 14.5% increase from 2024 levels. Average rent prices are expected to continue their upward trajectory, potentially reaching around $850 per month by 2029, a 26.3% increase from 2022 levels.
In summary, zip code 65668 demonstrates a robust housing market characterized by high homeownership rates and significantly appreciating property values. The area has shown resilience in maintaining stable ownership percentages despite fluctuating interest rates. The rental market, while smaller, has seen substantial price increases, outpacing population growth. Moving forward, the community is likely to see continued, though more moderate, growth in both home values and rental prices, reflecting ongoing demand and economic factors in this Missouri locale.
