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Rising Home Values and Falling Ownership: The Evolving Housing Market in Van Buren, Missouri's 63965 Zip Code
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
Van Buren, Missouri, zip code 63965, is a small town nestled in the Ozark foothills. Over the past decade, this community has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local dynamics. The homeownership rate in Van Buren has shown a gradual decline from 2013 to 2022. In 2013, 74% of residents were homeowners, but by 2022, this figure had decreased to 63%. Interestingly, this decline in homeownership corresponded with a significant increase in average home prices. In 2016, the average home price was $84,937, and by 2022, it had risen to $141,291, representing a 66% increase over six years.
The relationship between federal interest rates and homeownership rates in Van Buren follows a generally inverse pattern. As interest rates remained low from 2013 to 2021, hovering around 0.1% to 1.83%, homeownership rates remained relatively stable, fluctuating between 71% and 76%. However, as interest rates began to rise sharply in 2022 to 1.68%, homeownership rates dropped to 63%, suggesting that higher borrowing costs may have deterred potential buyers.
The percentage of renters in Van Buren has increased from 26% in 2013 to 37% in 2022. This rise in renter occupancy has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $417, which increased to $555 in 2019, representing a 33% increase. However, by 2022, average rent had decreased to $379, a 32% drop from its peak. These fluctuations in rent prices occur against a backdrop of population changes, with the town's population decreasing from 2,807 in 2017 to 2,132 in 2022, potentially influencing rental market dynamics.
In 2023 and 2024, Van Buren's housing market showed signs of cooling. The average home price decreased from $141,291 in 2022 to $135,519 in 2023, and further to $131,042 in 2024. This cooling trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially dampening housing demand.
Looking ahead, predictive models suggest a potential stabilization in home prices over the next five years, with modest growth likely if interest rates moderate. Rent prices may see a gradual increase as the rental market adjusts to changing demographics and housing preferences. However, these projections are subject to various economic factors and local market conditions.
In summary, Van Buren has experienced a shift towards renting, with homeownership rates declining as home prices increased substantially. The recent cooling in home prices, coupled with rising interest rates, suggests a potential rebalancing of the housing market. These trends highlight the complex interplay between homeownership, housing prices, and broader economic factors in this small Missouri town.
