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Zip Code 63118: Rising Home Values and Shifting Ownership in St. Louis
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 63118, located in St. Louis, Missouri, has experienced significant fluctuations in homeownership rates and housing prices over the past decade. This diverse urban area has seen a gradual shift in its residential landscape, reflecting broader economic and social trends in the region.
The ownership percentage in zip code 63118 has shown a notable increase in recent years, rising from 36% in 2019 to 42% in 2022. This upward trend in homeownership coincides with changes in average home prices. In 2019, the average home price was $121,465, which increased to $174,959 by 2022, representing a substantial 44% growth over three years. This correlation suggests that rising property values may have encouraged more residents to invest in homeownership, possibly viewing it as a favorable long-term financial decision.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% in 2019 to just 0.08% in 2021. This low-interest environment likely contributed to the increase in homeownership, as it made mortgages more affordable for potential buyers. The rise in homeownership from 36% in 2019 to 40% in 2021 aligns with this period of low interest rates.
Conversely, the rental market in zip code 63118 has experienced its own set of changes. The percentage of renters decreased from 64% in 2019 to 58% in 2022, mirroring the increase in homeownership. Interestingly, average rent prices have shown volatility during this period. In 2019, the average rent was $1,080, which decreased to $897 in 2020, possibly due to the economic impact of the COVID-19 pandemic. However, rent prices began to recover, reaching $954 by 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, suggests a shifting dynamic in the local housing market.
Looking at the most recent data, the average home price in zip code 63118 reached $180,673 in 2023, showing continued growth from previous years. However, in 2024, there was a slight decline to $179,836, indicating a potential stabilization in the market. This coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the slowdown in home price appreciation.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 63118 will continue to grow, but at a more modest pace. The recent stabilization and higher interest rates suggest a potential cooling of the rapid price increases seen in previous years. For rent prices, we expect a gradual upward trend, influenced by the overall housing market dynamics and local economic factors.
In summary, zip code 63118 has witnessed a significant shift towards homeownership, with rising home values and fluctuating rent prices. The interplay between federal interest rates, housing prices, and ownership rates highlights the complex nature of the local real estate market. As the area continues to evolve, these trends will likely shape the future of housing in this St. Louis neighborhood.
