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Rising Home Values and Declining Ownership: The Complex Housing Market of Zip Code 63137 in Bellefontaine Neighbors, Missouri
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 63137, located in Bellefontaine Neighbors, Missouri, has experienced significant shifts in homeownership rates and property values over the past decade. This area, spanning 8.44 square miles, has seen a general trend of decreasing homeownership and fluctuating average home and rent prices.
The homeownership rate in zip code 63137 has steadily declined from 60% in 2013 to 50% in 2022. This decline coincides with a volatile pattern in average home prices. In 2013, the average home price was $42,202, which dropped to a low of $40,666 in 2014. However, from 2015 onwards, there has been a significant upward trend in home values. By 2022, the average home price had more than doubled to $88,455, despite the continued decrease in homeownership rates.
Federal interest rates have played a role in these homeownership trends. From 2013 to 2015, interest rates remained extremely low, between 0.09% and 0.13%. During this period, homeownership rates were relatively stable, ranging from 56% to 60%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, falling from 53% in 2016 to 50% in 2022.
As homeownership decreased, the percentage of renters in zip code 63137 increased from 40% in 2013 to 50% in 2022. Interestingly, average rent prices did not follow a consistent upward trend during this period. Average rent increased from $974 in 2013 to a peak of $1,047 in 2017, but then began to decline, reaching $902 in 2022. This decrease in average rent occurred despite the growing proportion of renters, which could be attributed to various factors such as changes in local economic conditions or housing policies.
In 2023, the average home price in zip code 63137 slightly increased to $88,637, while federal interest rates rose significantly to 5.02%. As of 2024, the average home price has experienced a minor decrease to $86,000, with interest rates further climbing to 5.33%. These higher interest rates could potentially impact future homeownership rates and property values in the area.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. Average home prices in zip code 63137 may continue to rise, albeit at a slower pace due to higher interest rates. We might expect average home prices to reach around $95,000 to $100,000 by 2029. Average rent prices, which have been decreasing in recent years, may stabilize or slightly increase as the rental market adjusts to changing demand. By 2029, average rent could potentially rise to the $950 to $1,000 range.
In summary, zip code 63137 has witnessed a significant shift from homeownership to renting over the past decade, with homeownership rates dropping from 60% to 50%. Despite this trend, average home prices have more than doubled since 2013, reaching $88,455 in 2022. The rental market has expanded, but average rent prices have decreased in recent years. The interplay between federal interest rates, property values, and housing preferences will continue to shape the real estate landscape in this Missouri community in the coming years.
