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Rising Home Values and Ownership in Jefferson City's 65101 Zip Code: A Decade of Growth
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
Jefferson City, the capital of Missouri, is located in zip code 65101. This area has experienced fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising average home values.
The homeownership rate in zip code 65101 has shown a gradual increase from 63% in 2013 to 67% in 2022. This upward trend coincided with a significant rise in average home prices, which grew from $127,948 in 2012 to $215,887 in 2022, representing a 68.7% increase over this period. The most substantial year-over-year growth in average home prices occurred between 2020 and 2021, with a 14.9% increase from $164,421 to $188,886. This surge in home values may have contributed to the slight increase in homeownership, as residents possibly viewed real estate as an attractive investment opportunity.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely made mortgages more accessible and affordable for potential homebuyers, supporting the observed increase in homeownership. For instance, the homeownership rate reached its peak of 68% in 2021 when the federal interest rate was at a mere 0.08%, suggesting a correlation between low interest rates and higher homeownership rates.
The rental market in zip code 65101 has shown interesting trends as well. The percentage of renters decreased slightly from 36% in 2013 to 33% in 2022. Despite this decline, average rent prices increased from $667 in 2013 to $731 in 2022, a 9.6% rise. The highest average rent was recorded in 2021 at $806, which coincided with the lowest renter percentage of 32%. This inverse relationship between renter percentage and average rent prices could be attributed to a combination of factors, including increased demand for higher-quality rental properties and overall economic growth in the area.
Looking at the most recent data, average home prices in zip code 65101 continued to rise, reaching $230,614 in 2023 and $241,151 in 2024. This represents a 6.8% increase from 2022 to 2023 and a further 4.6% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in the area has maintained its upward trajectory in terms of average home prices.
Based on the observed trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 65101 may continue to appreciate, albeit at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $275,000 to $300,000 by 2029. Average rent prices could also continue their upward trend, potentially reaching $850 to $900 per month by 2029, assuming steady economic growth and continued demand for rental properties in the area.
In summary, zip code 65101 has experienced a notable increase in homeownership rates and average home prices over the past decade, with recent years showing particularly strong growth. The rental market has seen a slight decrease in the percentage of renters, but average rent prices have generally increased. These trends, coupled with the area's status as the state capital, suggest a dynamic and evolving real estate market in Jefferson City.
