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Zip Code 63132: Rising Home Values and Declining Ownership in Olivette, 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 63132, located in Olivette, Missouri, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This area has seen a gradual decline in homeownership rates alongside a significant increase in average home prices and average rent costs.
The ownership percentage in zip code 63132 has shown a slight downward trend from 2013 to 2022. In 2013, 60% of housing units were owner-occupied, while by 2022, this figure had decreased to 52%. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $177,656, and by 2022, it had risen to $311,396, representing a 75% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents in the area.
Federal interest rates have played a role in homeownership trends in zip code 63132. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 55-60%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline, dropping to 52% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in zip code 63132 increased from 40% in 2013 to 48% in 2022. Correspondingly, average rent prices rose substantially during this period. In 2013, the average rent was $1,032, and by 2022, it had increased to $1,493, representing a 45% rise. The population in the zip code fluctuated during this time, with 13,733 residents in 2013 and 14,245 in 2022. The increased demand for rentals, coupled with rising property values, likely contributed to the significant increase in average rent prices.
In 2023 and 2024, the upward trend in average home prices continued in zip code 63132. The average home price reached $332,529 in 2023 and further increased to $344,695 in 2024. This represents a 10.6% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates observed in the dataset since the 1990s.
Looking ahead, based on the observed trends, we can project that average home prices in zip code 63132 may continue to rise over the next five years, potentially reaching around $400,000 by 2029. However, the rate of increase might slow down due to the current high interest rates. Average rent prices are also likely to continue their upward trajectory, potentially surpassing $1,800 per month by 2029. These projections assume that current economic conditions and local market factors remain relatively stable.
In summary, zip code 63132 has experienced a gradual shift towards more renters and fewer homeowners over the past decade, coinciding with significant increases in both average home prices and average rent costs. The area has shown resilience in terms of property values, with consistent growth even in the face of fluctuating population numbers and rising interest rates. These trends suggest a changing housing landscape in the zip code, with potential implications for affordability and community demographics in the coming years.
