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Rising Home Values and Ownership Trends in Zip Code 63636: Des Arc's Real Estate Evolution
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 63636, located in Des Arc, Missouri, has experienced significant demographic and housing market shifts over the past decade. This rural area has seen fluctuating homeownership rates, coupled with notable changes in average home prices and average rent values, reflecting the dynamic nature of its local real estate market.
The homeownership rate in zip code 63636 has shown a general upward trend, increasing from 79% in 2013 to 85% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2016, the average home price was $85,078, which steadily climbed to $137,188 by 2022, representing a 61% increase over six years. This parallel growth suggests that rising property values did not deter homeownership in the area, possibly indicating strong local economic conditions or a preference for property investment among residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 79%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight fluctuation in homeownership, but it generally remained high. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a notable increase in homeownership to 84% and 85% respectively, demonstrating how lower interest rates can stimulate home buying activity.
The rental market in zip code 63636 has shown inverse trends to homeownership. The percentage of renters decreased from 21% in 2013 to 15% in 2022. Despite this decline in the renter population, average rent prices have increased significantly. In 2013, the average rent was $440, which rose to $657 by 2022, a 49% increase. This upward trend in rent prices, despite a shrinking renter population, could indicate a shortage of rental properties or an increase in the quality of available rentals.
Looking at the most recent data, the average home price in 2023 was $132,229, showing a slight decrease from 2022. This trend continued into 2024, with average home prices further declining to $129,129. These decreases coincide with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This inverse relationship between interest rates and home prices is a common economic phenomenon, as higher borrowing costs often lead to reduced demand and lower property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 63636 may experience a period of stabilization or slight decline in the short term, influenced by the current high interest rate environment. However, as the market adjusts, we expect a gradual return to growth, potentially reaching around $145,000 by 2029. For average rent prices, the forecast suggests continued growth, albeit at a more moderate pace, potentially reaching approximately $750 by 2029.
In summary, zip code 63636 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising property values. The inverse relationship between homeownership and rental trends, coupled with the impact of federal interest rates, has shaped the local real estate landscape. While recent data shows a cooling in home prices, long-term projections suggest a return to growth for both the home buying and rental markets in this Missouri community.
