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Zip Code 63304: Rising Home Values and High Ownership Rates in Weldon Spring, 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 63304, located in Weldon Spring, Missouri, has experienced notable changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has maintained a consistently high rate of homeownership, with slight fluctuations in recent years. The average home prices have shown a steady upward trend, while average rent prices have experienced some variations.
The homeownership rate in zip code 63304 has remained relatively stable, ranging from 86% to 88% between 2013 and 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $194,271, which increased to $347,779 by 2022, representing a substantial 79% increase over nine years. This trend suggests a strong correlation between rising home values and sustained high homeownership rates in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of stable homeownership rates around 87-88%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 86% in 2019. However, the sharp drop in interest rates to 0.38% in 2020 corresponded with a rebound in homeownership to 87%, illustrating how lower interest rates can stimulate home buying activity.
Renter percentages in zip code 63304 have shown minor fluctuations, ranging from 11% to 13% between 2013 and 2022. Average rent prices have experienced some volatility during this period. In 2013, the average rent was $1,339, which increased to $1,430 by 2018, representing a 6.8% increase. However, average rent prices then decreased to $1,354 in 2022, a 5.3% drop from the 2018 peak. This trend suggests that while home prices have consistently risen, rent prices have been more responsive to local market conditions and population changes.
In 2023, the average home price in zip code 63304 reached $362,736, continuing the upward trend observed in previous years. This represents a 4.3% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in recent years. Moving into 2024, the average home price has further increased to $374,201, a 3.2% rise from 2023. The federal interest rate for 2024 stands at 5.33%, indicating a continued tightening of monetary policy.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 63304 are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices may see modest increases as well, possibly returning to or surpassing the peak levels observed in 2018. However, the exact trajectory will depend on various factors including local economic conditions, population growth, and broader market trends.
In summary, zip code 63304 has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The area has shown resilience in maintaining strong homeownership levels despite fluctuations in interest rates and economic conditions. The rental market, while smaller, has shown more variability in pricing, reflecting its responsiveness to local market dynamics. As we move forward, the interplay between interest rates, home prices, and rental rates will continue to shape the housing landscape in this Missouri community.
