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Average Home Values and Ownership: Zip Code 63107's Shifting Housing Market in St. Louis, Missouri
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 63107, located in St. Louis, Missouri, has experienced significant demographic and housing market changes over the past decade. This area has seen fluctuations in homeownership rates and property values, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 63107 has shown a slight upward trend from 2013 to 2021, with some fluctuations. In 2013, the homeownership rate was 42%, which increased to 43% by 2021. However, there was a notable decrease to 39% in 2022. During this period, average home prices in the area have generally increased. From 2016 to 2022, average home prices rose from $42,620 to $54,681, representing a 28.3% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, as interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates in the area gradually increased from 42% to 43%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 63107 have fluctuated inversely to homeownership rates, as expected. The proportion of renters decreased slightly from 58% in 2013 to 57% in 2021, before increasing to 61% in 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $759, which increased to $778 in 2014. However, there was a general downward trend thereafter, with average rent dropping to $741 in 2022. This decrease in rent prices occurred despite the increase in the percentage of renters, possibly indicating other factors at play such as changes in housing supply or local economic conditions.
In 2023 and 2024, the housing market in zip code 63107 has shown some interesting developments. The average home price in 2023 was $49,529, a decrease from the 2022 price of $54,681. This downward trend continued into 2024, with the average home price further declining to $47,909. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Looking ahead, based on recent trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices in zip code 63107 may continue to experience some downward pressure in the short term due to high interest rates. However, if interest rates stabilize or decrease, we might see a gradual recovery in home prices. For rent prices, the trend suggests a potential for modest increases, especially if homeownership becomes less attainable due to higher interest rates, potentially driving more demand for rental properties.
In summary, zip code 63107 has experienced a complex interplay of homeownership rates, property values, and rental market dynamics. The area has seen a general increase in average home prices from 2016 to 2022, followed by a recent decline. Homeownership rates have fluctuated but showed an overall slight increase until 2021, with a decrease in 2022. The rental market has seen decreasing average rents despite an increase in the proportion of renters. Recent increases in federal interest rates appear to be influencing the housing market, potentially contributing to the current cooling of home prices in the area.
