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Rising Home Values and High Ownership Rates in Zip Code 65023: A Decade of Growth in Centertown, 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 65023, located in Centertown, Missouri, is a small rural area covering 52.53 square miles. Over the past decade, this community has experienced notable fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 65023 has remained relatively stable, hovering around 85-88% between 2013 and 2022. This high rate of homeownership indicates a strong preference for property ownership in the area. Average home prices have shown a consistent upward trend, increasing from $155,222 in 2012 to $280,716 in 2022, representing an impressive 80.8% growth over this period. The most significant jump occurred between 2020 and 2022, with prices rising from $211,578 to $280,716, a 32.7% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in zip code 65023. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%. During this time, homeownership rates remained steady at around 85-87%. As interest rates began to rise gradually from 2016 to 2019, reaching 2.16% in 2019, homeownership rates showed slight fluctuations but remained within the 85-88% range. The sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 coincided with a slight increase in homeownership to 88% in 2021, possibly due to more favorable borrowing conditions.
Renter percentages in zip code 65023 have remained relatively low, fluctuating between 12% and 15% from 2013 to 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $868, which dropped significantly to $499 in 2015, a 42.5% decrease. Rent prices then rose gradually, reaching $677 in 2020, before increasing to $730 in 2021 and slightly decreasing to $685 in 2022. These fluctuations in rent prices do not show a clear correlation with the relatively stable renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices more significantly than demand from renters.
In 2023 and 2024, average home prices in zip code 65023 continued their upward trajectory. The average home price reached $293,014 in 2023 and further increased to $309,206 in 2024, representing a 10.1% increase over two years. This growth occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand for housing or limited supply in the area.
Looking ahead, based on the observed trends, we can forecast that average home prices in zip code 65023 are likely to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate might suggest an annual growth rate of 3-5%, which could bring average home prices to around $355,000-$390,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict. However, if the trend of the past few years continues, we might expect average rent prices to fluctuate between $650 and $800 over the next five years, with potential for upward pressure if homeownership becomes less affordable due to rising prices and interest rates.
In summary, zip code 65023 has maintained a high and stable rate of homeownership despite significant increases in average home prices. The area has shown resilience in its housing market, with property values appreciating considerably, especially in recent years. While rent prices have been more volatile, they have generally remained lower than in previous peaks, potentially making renting an attractive option for some residents. The continued rise in home prices, even in the face of increasing interest rates, suggests a robust local housing market with potential for further growth in the coming years.
