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Zip Code 63089: Villa Ridge's High Homeownership and Rising Home Values
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
Villa Ridge, located in zip code 63089 in Missouri, is a small community that has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market dynamics.
The homeownership rate in Villa Ridge has remained relatively stable, ranging from 85% to 90% between 2013 and 2022. During this period, average home prices have shown a general upward trend, with some fluctuations. In 2013, the average home price was $164,548, which increased to $253,307 by 2022, representing a significant 54% growth over nine years.
Examining the relationship between federal interest rates and homeownership rates reveals some interesting patterns. From 2013 to 2016, as interest rates remained low (0.11% to 0.40%), homeownership rates in Villa Ridge stayed relatively stable at around 88%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight decrease in homeownership to 85%. Interestingly, when interest rates dropped sharply in 2020 (0.38%) and 2021 (0.08%), homeownership rates rebounded to 89%, suggesting that lower interest rates may have encouraged home buying in the area.
The renter population in Villa Ridge has fluctuated between 10% and 15% from 2013 to 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $763, which increased to a peak of $1,076 in 2017, representing a 41% increase. However, rent prices then experienced a significant drop to $709 in 2020, before rebounding to $1,006 in 2021 and then declining again to $712 in 2022. These fluctuations in rent prices do not seem to correlate strongly with the changes in the renter population percentage, suggesting that other factors may be influencing rental market dynamics in the area.
Looking at the most recent data, the average home price in Villa Ridge continued to rise in 2023, reaching $258,806. This upward trend persisted into 2024, with average home prices climbing to $267,593. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and further to 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices in the area have continued to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Villa Ridge will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We expect average home prices to reach approximately $290,000 to $300,000 by 2029. For rent prices, given their historical volatility, we predict a more moderate increase, potentially reaching an average of $1,100 to $1,200 per month by 2029.
In summary, Villa Ridge has maintained a high homeownership rate despite fluctuations in average home prices and interest rates. The community has shown resilience in its housing market, with home values appreciating significantly over the past decade. While rent prices have been more volatile, they have generally trended upward. The continued rise in home prices, even in the face of higher interest rates, suggests a strong underlying demand for housing in this zip code. As we look to the future, both homeowners and renters in Villa Ridge should anticipate a continued upward trajectory in housing costs, reflecting the area's desirability and economic dynamics.
