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Home Values and Ownership in Zip Code 64067: Lexington's Shifting Housing 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
Lexington, Missouri, located in zip code 64067, is a small urban area with a rich history and evolving real estate market. Over the past decade, this community has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local dynamics. The homeownership rate in Lexington has shown a gradual decline from 2013 to 2020, followed by a slight uptick in recent years. In 2013, 73% of residents owned their homes, but this figure decreased to 64% by 2020. However, since 2021, there has been a modest increase to 65% homeownership. Concurrently, average home prices have seen significant growth. From 2012 to 2022, average home prices rose from $71,626 to $168,162, representing a substantial 134.8% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in Lexington. The period from 2010 to 2015 saw historically low interest rates, hovering around 0.1% to 0.18%. During this time, homeownership rates remained relatively stable. However, as interest rates began to rise from 2016 onwards, reaching 1.83% in 2018 and 2.16% in 2019, we observed a corresponding decline in homeownership rates from 69% in 2015 to 64% in 2019. This trend aligns with the general principle that higher interest rates can make home financing less affordable, potentially discouraging homeownership.
Renter percentages in Lexington have shown an inverse relationship to homeownership rates, increasing from 27% in 2013 to 36% in 2020, before slightly decreasing to 35% in 2022. Average rent prices have also seen a significant upward trend. In 2013, the average rent was $589, which increased to $831 by 2022, representing a 41% rise. This increase in rent prices coincided with a period of population growth, from 5,506 in 2013 to 5,694 in 2022, suggesting increased demand for rental properties.
In 2023 and 2024, Lexington continued to experience growth in average home prices. The average home price reached $175,652 in 2023 and further increased to $180,953 in 2024. This represents a 7.6% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $210,000 by 2029, assuming a conservative annual growth rate of 3%. Similarly, average rent prices might increase to approximately $950 per month, based on a projected 2.5% annual increase.
In summary, Lexington (64067) has experienced a gradual shift towards renting, with homeownership rates declining and then stabilizing in recent years. Despite this trend, both average home prices and rent prices have shown significant increases. The interplay between federal interest rates, local population dynamics, and broader economic factors continues to shape the real estate landscape in this Missouri community.
