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Rising Home Values and Ownership in Zip Code 63080: Sullivan's Resilient Housing Market
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
Sullivan, Missouri, zip code 63080, is a suburban area that has experienced notable shifts in homeownership rates and housing prices over the past decade. This analysis examines the trends in ownership versus renting, and their relationship to average housing and rent prices in the area.
The homeownership rate in Sullivan has shown a significant increase in recent years, rising from 64% in 2016 to 76% in 2022. This upward trend in homeownership coincides with a steady increase in average home prices. In 2016, the average home price was $135,286, which rose to $171,474 by 2022, representing a 26.7% increase over six years.
The relationship between federal interest rates and homeownership rates in Sullivan appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2016 and 2020 (ranging from 0.4% to 0.38%), homeownership rates in Sullivan increased from 64% to 70%. This suggests that the low-interest environment may have made home financing more accessible for residents.
Conversely, as homeownership rates increased, the percentage of renters in Sullivan decreased from 36% in 2016 to 24% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. The average rent price rose from $691 in 2016 to a peak of $750 in 2017, before settling at $696 in 2022. This fluctuation in rent prices, despite a decreasing renter population, could be attributed to various factors such as changes in housing quality or local economic conditions.
In 2023 and 2024, Sullivan has seen a continued increase in average home prices, reaching $177,500 in 2023 and $181,918 in 2024. This represents a further 6.1% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in Sullivan appears to remain robust.
Looking ahead, based on the observed trends, we can predict that average home prices in Sullivan may continue to rise over the next five years, potentially reaching around $200,000 by 2029. However, the rate of increase might slow down due to the higher interest rate environment. As for rent prices, they may stabilize or show modest increases, potentially reaching an average of $750-$800 per month by 2029, assuming the current trends in homeownership and population continue.
In summary, Sullivan's zip code 63080 has experienced a significant shift towards homeownership, with rising average home prices and a decreasing renter population. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. These trends suggest a growing demand for homeownership in Sullivan, potentially driven by factors such as local economic growth or changing demographics.
