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Zip Code 63028: Rising Home Values and Shifting Ownership Trends in Festus, 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 63028, located in Festus, Missouri, presents an intriguing landscape of homeownership and rental trends over the past decade. This area has experienced notable shifts in its housing market, with homeownership rates fluctuating and average home prices showing a consistent upward trajectory.
The ownership percentage in zip code 63028 has seen some variations over the years, starting at 80% in 2013 and ending at 73% in 2022. During this period, average home prices have shown a steady increase. In 2013, the average home price was $154,165, which rose to $250,511 by 2022, representing a significant 62.5% increase over nine years. This upward trend in home prices appears to have had an impact on homeownership rates, as the percentage of owner-occupied homes decreased slightly from 80% to 73% during this period.
Federal interest rates have played a role in shaping homeownership trends in zip code 63028. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 78%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a slight decline in homeownership rates to 73%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 63028 have shown a corresponding increase as homeownership rates declined. The percentage of renters rose from 20% in 2013 to 27% in 2022. Interestingly, average rent prices have also increased during this period, from $768 in 2013 to $922 in 2022, representing a 20% increase. This rise in rent prices, coupled with the increase in the renter population, suggests a growing demand for rental properties in the area. The population growth from 27,720 in 2013 to 29,525 in 2022 may have contributed to this increased demand for rental housing.
Looking at the most recent data, the average home price in zip code 63028 reached $256,990 in 2023 and further increased to $269,722 in 2024. This represents a 5.3% increase from 2023 to 2024, indicating a continued strong housing market in the area. The federal interest rate also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in zip code 63028 to continue their upward trajectory, potentially reaching around $300,000 by 2029. Rent prices are also likely to increase, possibly surpassing $1,000 per month on average within the next five years if current trends persist.
In summary, zip code 63028 has experienced a gradual shift towards a higher percentage of renters, coupled with rising home prices and rent costs. The area has shown resilience in its housing market, with consistent growth in property values despite fluctuations in interest rates. As the population continues to grow and housing demand remains strong, both homeowners and renters in this zip code can expect to see continued appreciation in their property values and rental costs in the coming years.
