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Home Values and Ownership in Zip Code 63014: A Decade of Stability and Growth in Berger, 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 63014, located in Berger, Missouri, is a rural area spanning 51.08 square miles. This zip code has experienced fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increasing average home values and relatively stable ownership percentages.
The homeownership rate in zip code 63014 has remained relatively high, fluctuating between 84% and 88% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $130,850, which steadily increased to $249,517 by 2022, representing a significant 90.7% increase over nine years. This substantial rise in home values did not significantly impact the homeownership rate, which remained relatively stable, suggesting a strong preference for homeownership in this area despite rising prices.
Federal interest rates have played a role in homeownership trends in zip code 63014. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), the homeownership rate remained stable at around 85-86%. As interest rates began to rise from 2017 to 2019 (1% to 2.16%), there was a slight increase in homeownership, reaching 87% in 2019. This counterintuitive trend might be attributed to other local economic factors or a desire to secure mortgages before rates potentially increased further.
The renter population in zip code 63014 has remained relatively small, ranging from 12% to 16% between 2013 and 2022. Average rent prices have shown some fluctuation during this period. In 2013, the average rent was $722, which decreased to $667 by 2015. Subsequently, rent prices increased, reaching $750 in 2021, before slightly decreasing to $725 in 2022. These changes in rent prices do not show a strong correlation with the percentage of renters, which has remained relatively stable. The small renter population may be influenced more by local economic factors and housing availability than by rent prices alone.
In 2023, the average home price in zip code 63014 reached $258,268, continuing the upward trend observed in previous years. This represents a 3.5% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in previous years. Moving into 2024, the average home price has further increased to $272,690, a 5.6% rise from 2023. The federal interest rate for 2024 stands at 5.33%, indicating a continued tightening of monetary policy.
Looking ahead, based on historical trends and current economic conditions, we can project that average home prices in zip code 63014 are likely to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate would suggest an annual increase of 3-5%, which could bring the average home price to approximately $315,000-$330,000 by 2029. Rent prices may also see moderate increases, potentially reaching around $800-$850 per month in the same timeframe, assuming a similar growth rate to recent years.
In summary, zip code 63014 has demonstrated a strong preference for homeownership, maintaining high ownership rates despite significant increases in average home prices. The area has shown resilience in its housing market, with steadily increasing property values and relatively stable rent prices. The recent sharp rise in interest rates may impact future homeownership rates and price growth, but the historical data suggests that this zip code's housing market has been robust in the face of economic changes.
