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Rising Home Values and Fluctuating Ownership in Zip Code 65689: A Decade of Change in Cabool, 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 65689, located in Cabool, Missouri, has experienced notable shifts in its housing market over the past decade. This rural area has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local demographic shifts.
The homeownership rate in zip code 65689 has shown variability over the years, ranging from a high of 77% in 2020 to a low of 69% in 2016. Interestingly, as average home prices steadily increased, homeownership rates did not follow a consistent pattern. In 2012, the average home price was $83,698, and by 2022, it had nearly doubled to $164,934. Despite this substantial increase in home values, the homeownership rate only changed marginally from 72% in 2022 compared to 76% in 2013 when data became available.
Federal interest rates appear to have influenced homeownership rates in the area, albeit with some lag. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in the zip code reached their peak at 77% in 2020. However, as interest rates began to rise sharply in 2022 to 1.68%, homeownership rates declined to 72%, suggesting a potential correlation between higher borrowing costs and reduced home buying activity.
Renter percentages and average rent prices in zip code 65689 have shown an interesting relationship. In 2013, when data first became available, the renter-occupied percentage was 24% with an average rent of $496. By 2022, the renter percentage increased slightly to 28%, while the average rent rose to $638, representing a 28.6% increase over this period. The peak in renting occurred in 2016 at 31%, coinciding with a period of relatively low average rents of $537, suggesting that affordability may have temporarily shifted the balance towards renting.
Looking at the most recent data, average home prices in zip code 65689 continued their upward trajectory, reaching $174,304 in 2023 and $176,317 in 2024. This represents a 5.7% increase from 2022 to 2023 and a further 1.2% increase from 2023 to 2024. Simultaneously, federal interest rates have risen dramatically to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 65689 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic conditions, we project average home prices could reach approximately $200,000 by 2029. For rent prices, the trend suggests a continued increase, potentially reaching an average of around $750 per month in the same timeframe. However, these projections may be influenced by various factors including local economic developments, population changes, and broader market conditions.
In summary, zip code 65689 has demonstrated resilience in its housing market, with steadily increasing home values despite fluctuations in homeownership rates. The area has seen a gradual shift towards more renting, possibly due to rising home prices and changing economic conditions. The recent sharp increases in interest rates, coupled with continued growth in home prices, may present challenges for future homebuyers in the area. However, the relatively stable population and consistent growth in property values suggest a sustained demand for housing in this Missouri community.
