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Average Home Values and Ownership Trends in Sparta, Zip Code 65753: A Decade of Growth Despite Rising Interest Rates
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 65753, located in Sparta, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in average rent prices.
The homeownership rate in zip code 65753 has shown a notable upward trend from 2013 to 2022. In 2013, the percent of owner-occupied housing was 71%, which increased steadily to reach 80% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $113,613, and by 2022, it had risen to $230,267, representing a 102.7% increase over this period. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership in the zip code increased from 71% to 78%. This aligns with the general principle that lower interest rates make mortgages more affordable, encouraging home purchases. However, even as interest rates began to rise more sharply from 2017 onwards, homeownership in the area continued to increase, reaching 82% in 2019, suggesting other local factors were also influencing this trend.
The renter population in zip code 65753 has experienced a corresponding decline as homeownership increased. In 2013, 29% of housing units were renter-occupied, which decreased to 19% by 2022. Interestingly, average rent prices have shown more volatility compared to home prices. In 2013, the average rent was $618, which increased to $662 by 2016. However, there was a significant drop to $559 in 2017, followed by fluctuations in subsequent years. By 2022, the average rent had risen to $650, representing only a 5.2% increase from 2013 levels. This relatively modest increase in rent prices, compared to the substantial rise in home values, may have contributed to the shift towards homeownership in the area.
In 2023 and 2024, the housing market in zip code 65753 continued to evolve. The average home price in 2023 reached $241,206, a 4.8% increase from 2022. In 2024, it further increased to $244,442, showing a slower growth rate of 1.3%. This coincides with higher federal interest rates, which were 5.02% in 2023 and 5.33% in 2024, potentially influencing the pace of home price appreciation.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in zip code 65753 to continue rising, albeit at a more moderate pace. A five-year forecast suggests average home prices could reach approximately $275,000 to $290,000 by 2029. Average rent prices are predicted to show more stability, potentially increasing to around $700-$725 per month in the same period. These projections assume a continuation of current economic conditions and local market dynamics.
In summary, zip code 65753 has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices over the past decade. Despite rising interest rates in recent years, the area has maintained high homeownership levels. The rental market has shown more volatility in pricing, but with a general trend of modest increases. The coming years are likely to see continued growth in home values, albeit at a slower rate, while rent prices may experience more gradual increases.
