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Rising Home Ownership and Stable Values in Missouri's Rural Zip Code 65634
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
Cross Timbers, located in zip code 65634 in Missouri, presents an intriguing case study of homeownership and rental market dynamics. This rural area has experienced significant fluctuations in its ownership and rental patterns over the past decade, alongside changes in average home and rent prices.
The homeownership rate in zip code 65634 has shown a notable upward trend, particularly in recent years. In 2013, the homeownership rate stood at 81%, and by 2022, it had increased to 87%. This 6 percentage point increase indicates a growing preference for homeownership in the area. Interestingly, this rise in homeownership coincided with relatively stable federal interest rates from 2013 to 2021, which ranged between 0.08% and 2.16%. The low interest rate environment likely contributed to more favorable financing conditions, making homeownership more attainable for residents.
As homeownership rates increased, the percentage of renters in Cross Timbers decreased correspondingly. In 2013, renters made up 19% of the population, but by 2022, this figure had dropped to 12%. This 7 percentage point decrease in renter occupancy aligns with the growing trend towards homeownership. Despite the declining renter population, average rent prices showed an overall upward trajectory. In 2013, the average rent was $583, which increased to $622 by 2022, representing a 6.7% rise over the period. This increase in rent prices, despite a shrinking renter population, suggests a tightening rental market or improvements in rental property quality.
Looking at the most recent data, the average home price in zip code 65634 for 2023 was $204,896, with a slight decrease to $204,113 in 2024. This represents a marginal decline of 0.38% in average home prices over the year. Concurrently, federal interest rates increased from 5.02% in 2023 to 5.33% in 2024, potentially influencing the slight dip in home prices.
Applying predictive models to forecast 5-year trends, we anticipate a continued, albeit moderate, increase in average home prices for zip code 65634. Based on the current trajectory and considering factors such as the area's growing homeownership rate and historical price patterns, average home prices could potentially reach around $215,000 to $220,000 by 2029. For average rent prices, the forecast suggests a continued gradual increase, potentially reaching approximately $650 to $675 by 2029, assuming the current trends in population and housing demand persist.
In summary, Cross Timbers in zip code 65634 has demonstrated a strong shift towards homeownership over the past decade, with a corresponding decrease in the renter population. Despite this, both average home prices and rent prices have shown overall upward trends. The area's housing market appears resilient, with recent data showing stability in home prices despite rising interest rates. These trends suggest a growing preference for homeownership in the area, potentially driven by favorable economic conditions and the appeal of rural living.
