Rising Home Values and Declining Ownership in Zip Code 63115: A Decade of Change in St. Louis
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 63115, located in St. Louis, Missouri, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable shift in homeownership rates and fluctuations in average home and rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 63115 has shown a declining trend from 2013 to 2022. In 2013, the percentage of owner-occupied housing was 49%, which remained relatively stable until 2017 when it peaked at 52%. However, from 2018 onwards, there was a steady decline, reaching 42% by 2022. This decrease in homeownership coincided with an increase in average home prices. The average home price in the area rose from $30,934 in 2016 to $48,354 in 2022, representing a substantial 56% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates did not see a corresponding increase. This suggests that other factors, such as local economic conditions or housing affordability, may have played a more significant role in homeownership trends in this area than interest rates alone.
As homeownership declined, the percentage of renters in zip code 63115 increased from 49% in 2013 to 58% in 2022. This shift towards renting was accompanied by fluctuations in average rent prices. The average rent increased from $804 in 2013 to a peak of $852 in 2017, before declining to $818 in 2022. It's worth noting that while the renter population grew, the overall population of the zip code decreased from 22,045 in 2013 to 17,826 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in zip code 63115 was $44,941 in 2023 and $42,857 in 2024, showing a slight decrease from the 2022 peak. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 63115 may continue to experience moderate fluctuations. If the current economic conditions persist, we might see a stabilization or slight decrease in home prices over the next few years. For rent prices, the forecast suggests a potential for gradual increases, especially if the trend towards renting continues and the local economy improves.
In summary, zip code 63115 has experienced a significant shift from homeownership to renting over the past decade, with a notable increase in average home prices until 2022, followed by a recent cooling trend. The rental market has seen more modest price fluctuations despite an increasing renter population. The interplay between federal interest rates, local economic factors, and population changes has shaped these housing market dynamics, creating a complex landscape for both homeowners and renters in this St. Louis neighborhood.
