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Rising Home Values and Ownership in Zip Code 65459: Dixon'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
Zip code 65459, located in Dixon, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership rates coupled with fluctuating average home prices and rent values.
The homeownership rate in zip code 65459 has shown a consistent upward trend since 2017. In 2017, the homeownership rate was 70%, and it steadily increased to reach 78% by 2022. This 8 percentage point increase in homeownership over five years is significant. Interestingly, this rise in homeownership coincided with a period of substantial growth in average home prices. The average home price in the area rose from $113,570 in 2017 to $163,562 in 2022, representing a 44% increase over five years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow expected patterns. As interest rates remained relatively low from 2017 to 2021 (ranging from 1% to 2.16%), homeownership rates increased. This aligns with the general understanding that lower interest rates make mortgages more affordable, encouraging home purchases. The homeownership rate continued to rise even as interest rates began to increase in 2022, possibly due to other local economic factors or a lag in the market's response to interest rate changes.
Conversely, as homeownership rates increased, the percentage of renters in zip code 65459 decreased. The renter population fell from 30% in 2017 to 22% in 2022. Despite this decrease in the renter population, average rent prices showed some volatility. Average rent peaked at $814 in 2016 before declining to $738 in 2019. It then rose again to $784 in 2020 before settling at $777 in 2022. This fluctuation in rent prices, despite a decreasing renter population, could be attributed to various factors such as changes in housing quality, local economic conditions, or supply constraints.
Looking at the most recent data, the average home price in zip code 65459 continued its upward trajectory, reaching $178,108 in 2023 and $189,011 in 2024. This represents a further 15.6% increase from 2022 to 2024. Notably, these price increases occurred alongside a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests that local demand for housing in this area remained strong despite higher borrowing costs.
Based on the historical trends and recent data, we can project future housing market conditions in zip code 65459. Over the next five years, average home prices are likely to continue their upward trend, though potentially at a more moderate pace due to higher interest rates. We might expect average home prices to reach approximately $220,000 to $230,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching around $850 to $900 per month in five years.
In summary, zip code 65459 has experienced a significant increase in homeownership rates and average home prices over the past decade. The area has shown resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. The declining renter population, coupled with fluctuating rent prices, suggests a shift in local housing preferences towards ownership. These trends indicate a robust and evolving housing market in this Missouri zip code.
