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Zip Code 63104: Rising Home Values and Ownership Rates in St. Louis's Dynamic Housing Market
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 63104, located in St. Louis, Missouri, has experienced significant changes in its real estate landscape over the past decade. This urban area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 63104 has shown a gradual increase over the years, rising from 38% in 2013 to 45% in 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $173,501, and by 2022, it had risen to $283,957, representing a 63.7% increase over this period. The most significant annual jump occurred between 2020 and 2021, when average home prices surged from $241,227 to $269,048, a 11.5% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. 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, ranging from 38% to 40%. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% in 2019, we paradoxically saw a continued increase in homeownership rates, reaching 41% in 2019 and 45% by 2022. This suggests that other local factors, such as job market improvements or urban development initiatives, may have outweighed the impact of rising interest rates on homeownership decisions in this zip code.
The rental market in zip code 63104 has also undergone notable changes. The percentage of renters decreased from 62% in 2013 to 54% in 2022, inversely mirroring the rise in homeownership. Despite this decrease in the renter population, average rent prices have generally trended upward. In 2013, the average rent was $873, and by 2022, it had increased to $977, representing a 11.9% rise. The highest average rent was recorded in 2021 at $1,023, before slightly decreasing in 2022. This overall increase in rent prices, despite a declining renter percentage, could be attributed to factors such as improved housing quality, neighborhood gentrification, or a shortage of rental units relative to demand.
Looking at the most recent data, the average home price in zip code 63104 reached $290,698 in 2023 and further increased to $291,326 in 2024. This represents a continued, albeit slower, growth in home values. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends and home price growth in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 63104 will continue to rise, albeit at a more moderate pace. The rate of increase is expected to slow down due to the higher interest rates, potentially reaching around $320,000 by 2029. Average rent prices are also projected to increase, potentially reaching $1,100 to $1,200 per month by 2029, driven by inflation and ongoing urban development in the area.
In summary, zip code 63104 has experienced a notable shift towards homeownership, with a corresponding increase in average home prices over the past decade. Despite rising interest rates, the area has maintained an upward trend in homeownership, suggesting strong local market fundamentals. The rental market, while shrinking in terms of percentage, has seen increases in average rent prices, indicating a competitive and potentially undersupplied rental sector. As the area continues to evolve, these trends are likely to shape the future of housing in this St. Louis neighborhood.
