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Rising Home Values and Changing Ownership in Zip Code 63026: Fenton, Missouri's Housing Market Dynamics
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 63026, located in Fenton, Missouri, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This area has maintained a high rate of homeownership, though it has slightly declined in recent years. Meanwhile, average home prices have shown a steady increase, while average rent prices have fluctuated.
The homeownership rate in zip code 63026 has seen a gradual decline from 82% in 2018 to 79% in 2022. During this same period, average home prices have consistently increased. In 2018, the average home price was $236,299, rising to $303,917 by 2022, representing a significant 28.6% increase over four years. This trend suggests that while home values are appreciating, it may be becoming more challenging for some residents to enter the housing market as owners.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.40%), homeownership rates remained stable at 81-82%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see the first signs of decline in homeownership, dropping to 80% by 2019. This trend continued as interest rates fluctuated, with homeownership reaching 79% by 2022 when interest rates hit 1.68%.
The percentage of renters in zip code 63026 has increased from 18% in 2018 to 21% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2018, the average rent was $940, which increased to $960 in 2019 but then decreased to $929 in 2020. There was a significant jump to $1,083 in 2021, followed by a decrease to $966 in 2022. These fluctuations in rent prices, coupled with the increasing population (from 42,868 in 2018 to 43,432 in 2022), suggest a complex rental market influenced by various factors beyond simple supply and demand.
Looking at the most recent data, average home prices in zip code 63026 continued to rise, reaching $316,769 in 2023 and $326,629 in 2024. This represents a 7.5% increase from 2022 to 2024. Simultaneously, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 63026 will continue to rise, potentially reaching around $375,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast is less certain due to past fluctuations, but a moderate increase to approximately $1,100-$1,200 per month by 2029 is possible, assuming economic stability and continued population growth in the area.
In summary, zip code 63026 has experienced a gradual shift towards more renters, albeit still maintaining a high rate of homeownership. Average home prices have shown robust growth, which is expected to continue. The rental market has been more volatile, with fluctuating prices despite an increasing renter population. The recent sharp rise in interest rates may further impact these trends, potentially slowing home price growth and affecting affordability for prospective buyers. These dynamics suggest a housing market in transition, balancing between the traditional preference for homeownership and the growing demand for rental properties.
