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Rising Home Values and High Ownership in Oak Ridge, MO: Zip Code 63769's Unique Housing Trends
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
Oak Ridge, located in zip code 63769 in Missouri, has experienced significant changes in its housing market over the past decade. This small town has seen a notable increase in homeownership rates and fluctuations in both average home prices and average rent prices.
The homeownership rate in Oak Ridge has shown a steady upward trend, increasing from 88% in 2013 to an impressive 94% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $158,861, which grew to $257,090 by 2022, representing a 61.8% increase over six years. This trend suggests a strong correlation between rising homeownership rates and increasing property values in the area.
The relationship between federal interest rates and homeownership rates in Oak Ridge appears to follow the general principle that lower interest rates encourage homeownership. For instance, when interest rates were relatively low between 2013 and 2016 (ranging from 0.09% to 0.4%), the homeownership rate remained stable at around 88-89%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Oak Ridge actually increased to 94%, suggesting that local factors may have had a stronger influence on homeownership than national interest rates in this particular market.
Conversely, the percentage of renters in Oak Ridge has decreased from 12% in 2014 to 6% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. The average rent increased from $659 in 2013 to a peak of $812 in 2016, before fluctuating and settling at $731 in 2022. This trend might indicate that while fewer people are renting, those who do rent are facing higher costs, possibly due to limited rental inventory in a predominantly owner-occupied market.
Looking at more recent data, the average home price in Oak Ridge slightly decreased to $255,199 in 2023 but is projected to rise to $268,081 in 2024. This represents a 5% increase from 2023 to 2024. Interestingly, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Oak Ridge to continue their upward trajectory, potentially reaching around $300,000 by 2029 if the current growth rate persists. Average rent prices may also continue to rise, albeit at a slower pace, possibly reaching $800-$850 per month in the next five years.
In summary, Oak Ridge in zip code 63769 has demonstrated a strong trend towards homeownership, with property values appreciating significantly. The rental market, while shrinking, has seen fluctuating but generally increasing average rents. Despite rising interest rates, the local housing market appears robust, with continued growth expected in both home values and rental prices over the next five years.
