Loading Content...
Rising Home Values and Declining Ownership in Zip Code 63119: Webster Groves' Evolving Real Estate Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Webster Groves, located in zip code 63119 in Missouri, is a vibrant community that has experienced notable shifts in its housing landscape over the past decade. From 2013 to 2022, the area saw fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 63119 showed a slight decline from 76% in 2013 to 72% in 2022. This trend coincided with a significant increase in average home prices, which rose from $203,939 in 2013 to $330,666 in 2022, representing a 62% increase over the period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the relatively stable homeownership rates during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed a corresponding decrease in homeownership rates from 76% to 72%.
The renter population in zip code 63119 increased from 23% in 2013 to 28% in 2022, mirroring the decline in homeownership. Average rent prices experienced volatility during this period, starting at $1,219 in 2013, peaking at $1,523 in 2021, and then decreasing to $1,342 in 2022. The population growth from 33,703 in 2013 to 34,537 in 2022 likely contributed to increased demand for rental properties, supporting the upward trend in both renter percentages and average rent prices.
As of 2024, the average home price in zip code 63119 has reached $358,452, showing continued appreciation from the 2022 value. This represents a 8.4% increase from 2022 to 2024. The federal interest rate in 2024 stands at 5.33%, significantly higher than the rates observed in the previous decade. This elevated interest rate environment may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 63119 may continue to rise over the next five years, potentially reaching around $400,000 by 2029. However, the rate of increase is expected to moderate compared to the rapid growth seen in recent years. Average rent prices are also projected to increase, potentially surpassing $1,600 per month within the next five years, driven by ongoing demand for rental properties and overall housing market dynamics.
In summary, zip code 63119 has experienced a gradual shift towards a higher proportion of renters, accompanied by substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, local economic conditions, and population growth has shaped these trends. As the community moves forward, balancing housing affordability with property value appreciation will likely remain a key challenge for residents and policymakers alike.
