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Rising Home Values and Ownership in St. Louis' Zip Code 63109: 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
Zip code 63109, located in St. Louis, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in homeownership, coupled with significant changes in average home and rent prices.
The ownership percentage in zip code 63109 has shown a steady upward trend from 2013 to 2022. In 2013, 57% of residents were homeowners, and this figure increased to 63% by 2022. Concurrently, average home prices in the area have seen substantial growth. In 2013, the average home price was $145,196, which rose to $238,038 by 2022, representing a 64% increase over this period. This parallel growth suggests a strong correlation between rising homeownership rates and increasing property values in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of stable homeownership rates around 58%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates also increased, reaching 60% in 2019. This trend continued through 2022, with homeownership reaching 63% despite fluctuating interest rates, suggesting other local factors may have influenced this growth.
Renter percentages in zip code 63109 have inversely mirrored the homeownership trend, decreasing from 43% in 2013 to 37% in 2022. Average rent prices, however, have shown overall growth despite this decline in renter occupancy. In 2013, the average rent was $867, which increased to $913 by 2022, representing a 5.3% rise. This trend indicates that despite fewer renters, rental properties in the area have maintained their value, possibly due to overall housing demand or improvements in rental stock quality.
In 2023, the average home price in zip code 63109 reached $249,238, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $258,274, while interest rates slightly rose to 5.33%. These figures demonstrate continued growth in property values despite higher borrowing costs, suggesting strong demand in the local real estate market.
Looking ahead, predictive models suggest that average home prices in zip code 63109 may continue to rise over the next five years, potentially reaching around $300,000 by 2029 if current trends persist. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 63109 has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices. Despite a decrease in the renter population, average rent prices have also risen, albeit more moderately. The area's real estate market has shown resilience and growth, even in the face of rising interest rates, indicating strong local demand and potentially improved economic conditions for residents.
