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Rising Home Values and Stable Ownership: Zip Code 64057 in Independence, Missouri
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 64057, located in Independence, Missouri, presents an interesting case study of homeownership and rental trends over the past decade. This area has experienced fluctuations in both ownership percentages and average home prices, with a general trend towards increased property values and a slight shift in the balance between owners and renters.
The ownership percentage in zip code 64057 has remained relatively stable, with minor fluctuations over the years. In 2013, the homeownership rate stood at 59%, and by 2022, it had increased slightly to 63%. During this same period, average home prices in the area saw significant growth. In 2013, the average home price was $135,961, and by 2022, it had risen to $266,497, representing a substantial increase of 96% over nine years. This trend suggests that despite rising home prices, residents in this zip code have maintained a strong inclination towards homeownership.
Federal interest rates have played a role in shaping homeownership trends in zip code 64057. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 58-59%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased slightly to 63%. This suggests that other local factors, such as job market stability or demographic shifts, may have had a more significant impact on homeownership decisions in this area than national interest rate trends.
Renter percentages in zip code 64057 have shown minimal variation over the years, ranging from 36% to 38% between 2013 and 2022. Average rent prices, however, have seen a steady increase. In 2013, the average rent was $1,040, and by 2022 it had risen to $1,194, an increase of about 15% over nine years. This increase in rent prices, while significant, has been less dramatic than the rise in home prices. The population in the zip code has remained relatively stable, fluctuating between 16,000 and 17,000 residents, which may have contributed to the consistent demand for rental properties.
In 2023 and 2024, the housing market in zip code 64057 continued to evolve. The average home price in 2023 reached $276,687, and in 2024 it further increased to $284,097. This represents a 6.6% increase from 2022 to 2024, indicating a continued upward trend in property values. Interestingly, this growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests that local market factors in zip code 64057 are exerting a strong influence on home prices, potentially outweighing the dampening effect of higher interest rates on demand.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. Average home prices in zip code 64057 could potentially reach around $330,000 by 2029, assuming a continued but slightly moderated growth rate of about 3% annually. Average rent prices might increase to approximately $1,400 by 2029, following a similar trend of steady growth. However, these projections are subject to various factors, including economic conditions, local development, and demographic shifts.
In summary, zip code 64057 in Independence, Missouri, has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has maintained a relatively stable balance between owners and renters, with a slight trend towards increased homeownership. The continued rise in both home prices and rent suggests a strong local real estate market, potentially driven by factors such as local economic conditions or the area's desirability. As we move forward, it will be interesting to see how these trends evolve, particularly in light of changing interest rates and broader economic factors.
