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Zip Code 63055: Rising Home Values and Strong Ownership Trends 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 63055, located in Gray Summit, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural area has seen a significant increase in both homeownership and average home prices, while rental trends have fluctuated.
The homeownership rate in zip code 63055 has shown a strong upward trend, rising from 81% in 2013 to 88% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $208,732, which steadily increased to $355,065 by 2022, representing a 70% increase over nine years. This trend suggests a growing preference for homeownership in the area, despite rising property values.
Federal interest rates have played a role in homeownership trends in zip code 63055. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the initial increase in homeownership from 81% to 82%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to climb, reaching 86% in 2019. This trend persisted even as interest rates dropped again in 2020 and 2021, with homeownership peaking at 88% and maintaining that level through 2022.
The rental market in zip code 63055 has experienced fluctuations in both occupancy rates and average rent prices. The percentage of renters decreased from 19% in 2013 to 12% in 2022. Despite this decline in renter occupancy, average rent prices have increased significantly. In 2013, the average rent was $846, which rose to $1,109 by 2022, a 31% increase. This trend suggests that while fewer people are renting, those who do are paying considerably more.
In 2023 and 2024, the housing market in zip code 63055 continued to evolve. The average home price reached $361,598 in 2023 and further increased to $374,644 in 2024, showing a continued upward trajectory. Simultaneously, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking a significant shift from the low-interest environment of previous years.
Looking ahead, predictive models suggest that average home prices in zip code 63055 may continue to rise over the next five years, potentially reaching around $400,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. However, the rate of increase may slow down compared to the rapid growth seen in recent years.
In summary, zip code 63055 has experienced a significant increase in homeownership rates and average home prices over the past decade. The rental market has seen a decrease in occupancy but an increase in average rent prices. Despite rising interest rates, the area continues to show strong demand for homeownership, with property values consistently appreciating. These trends indicate a robust and evolving housing market in Gray Summit, Missouri.
