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Average Home Values and Ownership in Zip Code 65761: A Rural Missouri Housing Study
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 65761, located in Theodosia, Missouri, has experienced significant fluctuations in its housing market over the past decade. This rural area has seen notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in this zip code has shown a general upward trend, increasing from 83% in 2013 to 89% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $109,179, which steadily climbed to $220,675 by 2022, representing a remarkable 102% increase over six years. This strong correlation between rising homeownership rates and increasing home prices suggests a growing demand for property ownership in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 65761. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. This favorable lending environment likely contributed to the initial rise in homeownership from 83% to 85% during this time. As interest rates began to climb more steeply from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued to increase, suggesting other local factors were also influencing the market.
The rental market in zip code 65761 has experienced inverse trends to homeownership. The percentage of renters decreased from 17% in 2013 to 10% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $531, which increased to $674 by 2022, representing a 27% rise. This increase in rent prices, despite a shrinking renter population, could indicate a tightening rental market with limited available units.
Looking at the most recent data, the average home price in zip code 65761 was $216,542 in 2023 and $215,159 in 2024. This slight decrease of 0.64% suggests a potential stabilization or minor correction in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and could potentially slow down the rapid price appreciation seen in previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 65761 will continue to rise, albeit at a more moderate pace. The recent stabilization in prices, coupled with higher interest rates, suggests a potential annual growth rate of 3-5% over the next five years. This would put the average home price in the range of $250,000 to $275,000 by 2029. For rent prices, we expect a steady increase of 2-3% annually, potentially reaching an average of $750-$800 per month by 2029.
In summary, zip code 65761 has experienced a significant increase in homeownership rates and average home prices over the past decade. The rental market has shrunk but seen rising prices. Recent data indicates a potential stabilization in the housing market, likely influenced by rising interest rates. Moving forward, we expect continued but more moderate growth in both home prices and rents, reflecting the area's evolving economic landscape and housing demand.
