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Springfield, Missouri Zip Code 65802: Homeownership Trends Amidst Rising Home Values
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 65802, located in Springfield, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 65802 has shown a general decline from 2013 to 2019, followed by a slight recovery. In 2013, 56% of housing units were owner-occupied. This percentage decreased steadily, reaching a low of 48% in 2019. However, the trend reversed in recent years, with homeownership rising to 54% by 2022. Concurrently, average home prices in the area have shown a consistent upward trend. In 2013, the average home price was $82,212, which more than doubled to $176,440 by 2022, representing a significant 114.6% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. As interest rates remained low from 2013 to 2016 (below 0.5%), homeownership rates declined. However, as interest rates began to rise from 2017 to 2019 (reaching 2.16% in 2019), the decline in homeownership rates slowed. Interestingly, the recent uptick in homeownership from 2020 to 2022 occurred despite rising interest rates, suggesting other local factors may be influencing this trend.
Renter percentages in zip code 65802 showed an inverse relationship to homeownership rates, increasing from 44% in 2013 to a peak of 52% in 2019, before declining to 46% in 2022. Average rent prices have generally increased over this period, rising from $758 in 2013 to $837 in 2020, a 10.4% increase. However, there was a notable decrease in average rent to $781 in 2022, representing a 6.7% drop from the 2020 peak. This decrease in rent prices coincided with a slight increase in the area's population, from 45,561 in 2020 to 45,825 in 2022, suggesting a possible oversupply of rental units or other local economic factors affecting rental prices.
In 2023 and 2024, the housing market in zip code 65802 continued to evolve. The average home price rose to $188,913 in 2023 and further increased to $195,457 in 2024, representing a 10.8% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 65802. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $230,000 to $250,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and gradually increase, potentially reaching $850 to $900 per month by 2029, assuming economic conditions remain stable and population growth continues.
In summary, zip code 65802 has experienced a complex interplay of housing market dynamics over the past decade. The area has seen a recent reversal in the declining homeownership trend, significant growth in average home prices, and fluctuations in average rent prices. These changes, occurring against a backdrop of varying interest rates and population growth, highlight the dynamic nature of the local real estate market and suggest a potentially evolving landscape for both homeowners and renters in the coming years.
