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Rising Home Values and Shifting Ownership in Zip Code 63010: Arnold, Missouri's Suburban Housing Dynamics
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 63010, located in Arnold, Missouri, has experienced notable shifts in homeownership and housing market dynamics over the past decade. This suburban area has seen fluctuations in its population and housing trends, reflecting broader economic and social changes. The homeownership rate in zip code 63010 has shown a general decline from 2013 to 2019, followed by a slight recovery. In 2013, the area boasted an 83% homeownership rate, which gradually decreased to 75% by 2019. However, this trend reversed in recent years, with homeownership rising to 77% in 2022. Concurrently, average home prices have demonstrated a steady upward trajectory. In 2013, the average home price was $148,211, which increased significantly to $229,694 by 2022, representing a 55% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code reveals interesting patterns. From 2013 to 2015, when interest rates were historically low (around 0.1-0.13%), homeownership rates paradoxically declined from 83% to 81%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates initially continued to fall but then stabilized and slightly increased to 77% by 2022. This suggests that while low interest rates generally encourage homeownership, other local factors were also influencing housing decisions in this area.
Renter percentages in zip code 63010 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter population grew from 17% in 2013 to a peak of 25% in 2019, before slightly decreasing to 23% in 2022. Average rent prices have fluctuated over this period, with notable increases and decreases. In 2013, the average rent was $940, which rose to $1,035 in 2014. After some fluctuations, it reached $1,009 in 2017 before declining to $924 in 2019. By 2022, the average rent had rebounded to $946, showing overall moderate growth despite yearly variations.
In 2023 and 2024, the housing market in zip code 63010 continued its upward trend. The average home price reached $238,853 in 2023 and further increased to $247,482 in 2024, representing a 7.7% growth over these two years. Simultaneously, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially influencing homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 63010 may continue to rise over the next five years, potentially reaching around $280,000 by 2029. This projection is based on the steady growth observed in recent years and assumes relatively stable economic conditions. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $1,100 by 2029. These projections consider historical trends and current market dynamics but may be subject to change based on various economic factors.
In summary, zip code 63010 has experienced a period of declining homeownership followed by recent stabilization, coupled with consistent growth in average home prices. The rental market has shown more volatility in both occupancy rates and prices. The area's housing market appears resilient, with continued price appreciation expected in both the home buying and rental sectors, despite fluctuations in interest rates and demographic shifts.
