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Zip Code 63039: Rising Home Values and Ownership Rates in Gray Summit, 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 63039, located in Gray Summit, Missouri, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, with some fluctuations in average rent prices.
The homeownership rate in zip code 63039 has shown a steady increase from 2013 to 2022. In 2013, the percentage of owner-occupied homes was 73%, which rose to 78% by 2022. This upward trend coincides with a significant increase in average home prices. In 2013, the average home price was $126,943, which steadily climbed to $193,487 by 2022, representing a substantial 52.4% increase over this period.
The relationship between federal interest rates and homeownership rates in this area appears to follow the general principle that lower interest rates encourage homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), the homeownership rate increased from 73% to 75%. As interest rates began to rise more significantly from 2017 onwards, the homeownership rate continued to increase, reaching 82% in 2020 when interest rates dropped again to 0.38%.
Renter percentages in zip code 63039 have shown an inverse relationship to homeownership rates, decreasing from 27% in 2013 to 22% in 2022. Average rent prices, however, have experienced significant volatility. In 2013, the average rent was $775, which remained relatively stable until 2017 when it jumped to $1,143. By 2022, the average rent had further increased to $1,252, representing a 61.5% increase from 2013 to 2022. This substantial rise in rent prices occurred despite a decrease in the overall population from 714 in 2013 to 609 in 2022.
In 2023, the average home price in zip code 63039 reached $199,227, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price further increased to $206,032, with interest rates slightly higher at 5.33%. These figures demonstrate the resilience of the local housing market in the face of rising interest rates.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 63039 to continue their upward trajectory, potentially reaching around $240,000 by 2029. This projection is based on the consistent growth observed over the past decade. Average rent prices are also likely to continue increasing, potentially reaching approximately $1,500 by 2029, assuming the trend of the past few years continues.
In summary, zip code 63039 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. Despite fluctuations in the local population and significant increases in average rent prices, the area has maintained a strong housing market. The resilience of home prices in the face of rising interest rates suggests a robust local real estate market that is likely to continue its growth trajectory in the coming years.
