Richmond, Missouri: Zip Code 64085 Sees Steady Home Value Growth Amidst Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Richmond, located in zip code 64085 in Missouri, has experienced notable fluctuations in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in this area. The homeownership rate in Richmond has remained relatively stable, fluctuating between 65% and 69% from 2013 to 2022. In 2013, the homeownership rate was 69%, and by 2022, it stood at 68%. During this period, average home prices in the area saw a significant increase. In 2012, the average home price was $61,899, and by 2022, it had risen to $196,581, representing a substantial 217% increase over a decade.
The relationship between federal interest rates and homeownership rates in Richmond shows some correlation. For instance, in 2013, when interest rates were at 0.11%, the homeownership rate was at its highest at 69%. As interest rates gradually increased to 1.83% in 2018, the homeownership rate slightly decreased to 66%. However, despite the sharp increase in interest rates to 1.68% in 2022, the homeownership rate remained relatively stable at 68%, indicating that other factors may also influence homeownership decisions in this area.
Renter percentages in Richmond have shown slight variations, ranging from 31% to 35% between 2013 and 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $772, which peaked at $833 in 2014 before declining to $676 in 2017. By 2022, the average rent had risen again to $720. These fluctuations in rent prices do not show a strong correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may play a more significant role in determining rental rates.
Looking at the most recent data, the average home price in Richmond continued to rise in 2023, reaching $206,057. This trend persisted into 2024, with the average home price increasing further to $211,114. Notably, federal interest rates also saw a significant increase, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in Richmond appears to remain robust, with continued growth in average home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Richmond will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $250,000 to $275,000. For rent prices, we expect a moderate increase, with average rents potentially reaching $800 to $850 by 2029.
In summary, Richmond's housing market has shown resilience and growth over the past decade. Despite fluctuations in interest rates and rent prices, homeownership rates have remained relatively stable. The substantial increase in average home prices, even in the face of rising interest rates, suggests a strong demand for housing in this area. As we look to the future, both homeowners and renters in Richmond can expect continued, though potentially moderated, growth in the local housing market.
