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Average Home Values and Ownership Trends in Zip Code 63088: Valley Park's Shifting Real Estate Landscape
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
Valley Park, located in zip code 63088 in Missouri, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns and potential future trajectories.
From 2013 to 2022, Valley Park witnessed a notable fluctuation in homeownership rates. The percentage of owner-occupied homes peaked at 66% in 2017 before declining to 53% by 2022. This downward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in the area was $151,943, which steadily rose to $247,319 by 2022, representing a 62.8% increase over this period.
The relationship between federal interest rates and homeownership rates in Valley Park shows some correlation. As interest rates remained historically low from 2013 to 2016, hovering between 0.09% and 0.4%, homeownership rates in the area remained relatively stable, ranging from 62% to 64%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, homeownership rates in Valley Park showed a declining trend, dropping from 66% in 2017 to 53% in 2022.
Conversely, the renter population in Valley Park has grown over the years, increasing from 34% in 2017 to 47% in 2022. This rise in renters has been accompanied by fluctuations in average rent prices. The average rent reached its highest point in 2013 at $1,110 before declining to $973 in 2016. It then experienced a gradual increase, reaching $1,089 by 2022. The population of Valley Park has remained relatively stable during this period, with only minor fluctuations, suggesting that the shift towards renting may be influenced more by economic factors than by significant population changes.
Looking at the most recent data, the average home price in Valley Park continued its upward trajectory, reaching $262,254 in 2023 and further increasing to $272,374 in 2024. This represents a 10.1% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Valley Park will continue to rise, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on the historical trends observed and assume a continuation of current economic conditions.
In summary, Valley Park has experienced a shift towards renting in recent years, accompanied by significant increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing costs has been evident, with rising interest rates coinciding with declining homeownership. As the community moves forward, it appears poised for continued growth in both home values and rental costs, potentially reshaping the housing landscape of zip code 63088 in the coming years.
