Loading Content...
Rising Home Values and Stable Ownership in Zip Code 63050: A Decade of Housing Trends in Hillsboro, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 63050, located in Hillsboro, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a high percentage of owner-occupied housing units, with average home prices showing a steady upward trend.
The homeownership rate in zip code 63050 has remained relatively stable, with a slight decrease from 85% in 2013 to 83% in 2022. During this period, average home prices have shown significant growth. In 2013, the average home price was $163,499, which steadily increased to $279,441 by 2022, representing a 70.9% increase over nine years. This trend suggests that despite rising home prices, the area has maintained its appeal to homeowners.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, coinciding with stable homeownership rates around 85%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 84% by 2021. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 63050 have shown a modest increase from 14% in 2013 to 17% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $931, peaking at $988 in 2015, before decreasing to $875 in 2022. This represents a 6% decrease in average rent over nine years, despite the growing population from 14,751 in 2013 to 16,474 in 2022. The inverse relationship between rising homeownership costs and decreasing rent prices may have contributed to the slight increase in the renter population.
In 2023, the average home price in zip code 63050 reached $283,472, a 1.4% increase from 2022. This growth continued into 2024, with average home prices rising to $295,200, a 4.1% increase from 2023. Concurrently, federal interest rates climbed to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting homebuying decisions in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 63050 to continue their upward trajectory, potentially reaching around $340,000 by 2029. Average rent prices, which have been more volatile, may stabilize and show modest growth, potentially reaching approximately $950 per month in the same timeframe.
In summary, zip code 63050 has demonstrated resilience in maintaining high homeownership rates despite significant increases in average home prices. The area has experienced a slight shift towards renting, possibly due to the divergence between rising home prices and relatively stable rent costs. As interest rates continue to fluctuate, they will likely play a crucial role in shaping future homeownership trends in this zip code.
