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Zip Code 63020: Rising Home Values and Ownership Rates in De Soto, 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 63020, located in De Soto, Missouri, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, covering 145.48 square miles, has shown resilience in its real estate market, with a general trend towards increased homeownership and rising average home prices.
The homeownership rate in zip code 63020 has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate stood at 79%, and after a slight dip to 75% in 2018, it rebounded strongly to reach 82% by 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $122,899, which steadily increased to $201,188 by 2022, representing a 63.7% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite the federal interest rate rising from 0.11% in 2013 to 1.68% in 2022, the homeownership rate increased from 79% to 82% during the same period. This suggests that other local factors, such as job market stability or community development, may have played a more significant role in driving homeownership than interest rates alone.
Conversely, the renter population in zip code 63020 has decreased over time. In 2013, renters made up 21% of the population, which increased slightly to 25% by 2018, before dropping back to 18% in 2022. Average rent prices have shown some volatility but have generally increased. The average rent was $724 in 2013, peaked at $798 in 2016, and after some fluctuations, reached $775 in 2022. This represents a 7% increase in average rent over the decade, despite the decreasing percentage of renters.
Looking at the most recent data, the average home price in zip code 63020 continued to rise, reaching $206,604 in 2023 and $215,107 in 2024. This represents a 6.9% increase from 2022 to 2024. Notably, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the upward trend in home prices has persisted, indicating strong demand in the local real estate market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 63020 will continue to rise, potentially reaching around $250,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the area's increasing desirability. For rent prices, we expect a more moderate increase, potentially reaching an average of around $850 per month by 2029, assuming the current trends in homeownership and population growth continue.
In summary, zip code 63020 has demonstrated a strong trend towards increased homeownership, with rates rising from 79% to 82% between 2013 and 2022. This has been accompanied by a significant increase in average home prices, from $122,899 to $215,107 between 2013 and 2024. The rental market has seen more modest growth, with average rents increasing from $724 to $775 between 2013 and 2022. These trends suggest a robust and growing real estate market in the area, with a particular emphasis on homeownership.
