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Rising Home Values and Ownership in Zip Code 64465: Lathrop's 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 64465, located in Lathrop, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 96.61 square miles, has seen a general trend of increasing homeownership and rising property values, with some fluctuations in recent years.
The homeownership rate in zip code 64465 has shown a generally upward trend, increasing from 77% in 2016 to 81% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2012, the average home price was $105,242, and by 2022, it had more than doubled to $235,004, representing a substantial 123% increase over a decade. This parallel growth suggests a strong correlation between rising property values and homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in zip code 64465 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates stayed relatively stable around 77-78%. However, as interest rates began to rise more significantly from 2017 onwards, we see a slight increase in homeownership rates, reaching 84% in 2020 when interest rates dropped to 0.38%, possibly due to homeowners taking advantage of lower mortgage rates.
Renter percentages in zip code 64465 have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. The renter percentage dropped from 22% in 2016 to 19% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent increased from $726 in 2016 to $824 in 2018, then decreased to $793 in 2019, before rising again to $910 in 2021, and finally settling at $809 in 2022. This fluctuation in rent prices could be attributed to changes in local housing demand and supply, as well as broader economic factors affecting the rental market.
In 2023 and 2024, average home prices in zip code 64465 continued their upward trajectory, reaching $244,526 in 2023 and $248,129 in 2024. This represents a 4% increase from 2022 to 2023 and a further 1.5% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 64465 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $270,000 to $290,000 by 2029. Average rent prices, which have shown more volatility, could stabilize or see modest increases, potentially reaching $850 to $950 per month by 2029, depending on local economic factors and housing supply.
In summary, zip code 64465 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with significant growth in average home prices despite fluctuations in interest rates. The rental market, while more volatile, has also seen overall growth. These trends suggest a robust and dynamic housing market in Lathrop, Missouri, with potential for continued growth in both homeownership and property values in the coming years.
