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Average Home Values and Ownership in Zip Code 65725: Pleasant Hope's Decade of Growth
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 65725, located in Pleasant Hope, Missouri, presents an interesting case study of housing trends in a small Midwestern community. Over the past decade, this area has experienced notable shifts in homeownership rates and property values, reflecting broader economic and demographic changes.
The ownership percentage in zip code 65725 has shown a general upward trend, increasing from 74% in 2013 to 84% in 2022. This rise in homeownership coincided with a significant increase in average home prices, which grew from $128,203 in 2013 to $246,738 in 2022, representing a 92.5% increase over this period. The most substantial year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $179,272 to $207,699, a 15.9% rise.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 65725. The period of historically low interest rates from 2013 to 2021, where rates remained below 1% for several years, likely contributed to the increase in homeownership. For instance, as interest rates dropped from 1% in 2017 to 0.08% in 2021, homeownership rates rose from 82% to 87%. This correlation suggests that lower interest rates made mortgages more affordable, encouraging more residents to purchase homes.
Conversely, the renter percentage in zip code 65725 has generally decreased, falling from 26% in 2013 to 16% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend, increasing from $673 in 2013 to $723 in 2022. However, rent prices have fluctuated over the years, with the highest average rent of $767 recorded in 2016 when the renter percentage was at 17%. The population of the zip code has also fluctuated, potentially influencing the demand for rental properties and, consequently, rent prices.
In 2023 and 2024, average home prices in zip code 65725 continued to rise, reaching $252,884 in 2023 and $262,329 in 2024. This represents a 6.3% increase from 2022 to 2024. Concurrently, federal interest rates increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 65725 are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, influenced by factors such as housing demand, local economic conditions, and overall population growth in the Pleasant Hope area.
In summary, zip code 65725 has experienced a notable increase in homeownership rates and average home prices over the past decade, likely influenced by periods of low interest rates. The area has also seen a decrease in the renter population, although average rent prices have generally increased. Recent rises in interest rates and continued growth in home prices suggest a potentially changing landscape for both homeowners and renters in this Missouri community.
