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Zip Code 63037: Rising Home Values and High Ownership Rates in Gerald, 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 63037, located in Gerald, Missouri, presents an intriguing case study of homeownership and housing market dynamics. This area has experienced notable fluctuations in ownership percentages and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 63037 has shown a general upward trend, particularly in recent years. In 2013, the homeownership rate stood at 84%, and by 2022, it had increased to 88%. This rise in homeownership coincided with significant growth in average home prices. In 2013, the average home price was $125,630, and by 2022, it had risen to $218,426, representing a substantial increase of 73.9% over this period. The most dramatic price increases occurred between 2020 and 2022, with average home prices jumping from $165,616 to $218,426, a 31.9% increase in just two years.
Federal interest rates appear to have played a role in homeownership trends in this zip code. The period from 2013 to 2020 saw historically low interest rates, generally below 2%, which likely contributed to the increased homeownership rates. For instance, in 2020, when the federal interest rate dropped to 0.38%, the homeownership rate in the zip code reached 88%, up from 82% the previous year. This aligns with the well-established trend that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in zip code 63037 have fluctuated inversely to homeownership rates, as expected. In 2013, renters made up 16% of occupants, and this percentage decreased to 12% by 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $761, peaking at $851 in 2016, before declining to $746 in 2022. Interestingly, the population of the zip code decreased from 2,880 in 2013 to 2,589 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, average home prices in zip code 63037 continued to rise in 2023 and 2024, reaching $226,204 and $233,700 respectively. This represents a 7% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $260,000 to $280,000 by 2029. Rent prices may also see modest increases, potentially reaching an average of $800 to $850 per month in the same timeframe.
In summary, zip code 63037 has experienced a notable increase in homeownership rates and substantial growth in average home prices over the past decade. The interplay between federal interest rates, population changes, and local market conditions has shaped these trends. While homeownership has risen, the rental market has seen more fluctuation in both occupancy rates and prices. The recent spike in interest rates, coupled with continued home price appreciation, may present new challenges for homeownership affordability in the coming years.
