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Rising Home Values and Ownership in Zip Code 64430: Clarksdale's Rural Housing Boom
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 64430, located in Clarksdale, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, with some fluctuations in average rent prices.
The homeownership rate in zip code 64430 has shown a steady increase from 2013 to 2022. In 2013, 82% of housing units were owner-occupied, and this percentage rose to 90% by 2022. This significant increase in homeownership coincided with a substantial rise in average home prices. The average home price in 2013 was $136,273, which grew to $260,802 by 2022, representing a 91.4% increase over this period.
The trend of increasing homeownership rates appears to have been influenced by federal interest rates. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable around 82%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates also increased, reaching 90% in 2022. This trend suggests that despite rising interest rates, other factors may have been driving the increase in homeownership in this zip code.
The percentage of renters in zip code 64430 has correspondingly decreased from 18% in 2013 to 10% in 2022. Interestingly, despite this decrease in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $702, which increased to $755 by 2022, representing a 7.5% increase. However, there were fluctuations within this period, with the highest average rent of $949 recorded in 2021 before dropping in 2022.
Looking at the most recent data, the average home price in zip code 64430 for 2023 was $256,274, showing a slight decrease from 2022. This trend continued into 2024, with the average home price further decreasing to $251,181. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may be influencing the recent cooling in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64430 may experience a period of stabilization or slight decline in the short term, influenced by the current high interest rates. However, given the area's strong trend towards homeownership, prices are likely to resume an upward trajectory in the medium to long term. Average rent prices are expected to continue their overall upward trend, albeit with potential short-term fluctuations, as the reduced supply of rental properties may drive up costs for the remaining rental units.
In summary, zip code 64430 has demonstrated a robust trend towards increased homeownership, with the rate rising from 82% to 90% between 2013 and 2022. This shift has been accompanied by significant growth in average home prices, nearly doubling over the same period. While recent data shows a slight cooling in the housing market, likely influenced by rising interest rates, the area's strong preference for homeownership suggests continued resilience in the local real estate market.
