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Zip Code 63127: Rising Home Values and Ownership in Sunset Hills, 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 63127, located in Sunset Hills, Missouri, is a suburban area known for its high homeownership rates and steadily increasing property values. Over the past decade, this area has experienced notable shifts in both ownership percentages and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 63127 has shown remarkable stability with a slight upward trend. In 2013, 79% of residents were homeowners, and by 2022, this figure had increased to 82%. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $347,616, and by 2022, it had risen to $555,535, representing a 59.8% increase over nine years. This trend suggests a strong correlation between rising property values and homeownership rates in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 63127. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 78-79%. As interest rates began to rise gradually from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly, reaching 82% by 2022. This suggests that other factors, such as local economic conditions and housing demand, may have outweighed the impact of rising interest rates on homeownership in this particular zip code.
Renter percentages in zip code 63127 have fluctuated slightly over the years, with a general trend towards a modest increase. In 2013, 16% of residents were renters, and by 2022, this figure had risen to 18%. Interestingly, average rent prices have shown significant volatility. In 2013, the average rent was $1,879, which decreased to $1,483 in 2017 before rising sharply to $2,317 in 2022. This represents a 23.3% increase in average rent from 2013 to 2022, despite some intervening decreases. The population of the zip code has remained relatively stable during this period, suggesting that changes in rent prices may be more influenced by broader market forces than local population dynamics.
As of 2024, the average home price in zip code 63127 has reached $605,665, a 9% increase from the 2022 figure of $555,535. This continued appreciation in home values comes despite a significant increase in federal interest rates, which stood at 5.33% in 2024, up from 1.68% in 2022. The 2023 average home price was $586,918, indicating a steady year-over-year increase in property values.
Looking ahead, predictive models suggest that average home prices in zip code 63127 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by the overall appreciation of property values in the area. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, zip code 63127 has demonstrated a robust housing market characterized by high and increasing homeownership rates, steadily appreciating property values, and volatile but generally increasing rent prices. The area has shown resilience in maintaining strong homeownership rates even in the face of rising interest rates, suggesting a desirable location with strong local economic factors supporting the housing market.
