Loading Content...
Zip Code 63366: Rising Home Values and High Ownership Rates in O'Fallon, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
O'Fallon, located in zip code 63366 in Missouri, has experienced significant growth and changes in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices in this thriving community. The homeownership rate in O'Fallon has remained relatively stable, with a slight increase over the years. In 2013, the homeownership rate was 79%, and by 2022, it had risen to 81%. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $175,779, and by 2022, it had risen to $318,182, representing an 81% increase over nine years.
The relationship between federal interest rates and homeownership rates in O'Fallon shows an interesting pattern. Despite fluctuations in interest rates, the homeownership rate remained relatively stable. For instance, when interest rates were at a low of 0.08% in 2021, the homeownership rate was 82%. In 2022, as interest rates rose to 1.68%, the homeownership rate slightly decreased to 81%, but still remained high. This suggests that other factors, such as the city's strong economy and desirability, may have a more significant impact on homeownership than interest rates alone.
Renter percentages in O'Fallon have shown a slight decrease over time, from 21% in 2014 to 19% in 2022. Average rent prices have experienced some fluctuations during this period. In 2013, the average rent was $1,099, which increased to $1,137 in 2017 before decreasing to $1,023 in 2019. By 2022, the average rent had risen again to $1,110. These fluctuations in rent prices, coupled with the growing population (from 46,888 in 2013 to 51,139 in 2022), suggest a dynamic rental market responding to changing supply and demand factors.
Looking at the most recent data, the average home price in O'Fallon continued to rise, reaching $329,451 in 2023 and $337,357 in 2024. This represents a 3.5% increase from 2022 to 2023 and a further 2.4% increase from 2023 to 2024. Concurrently, federal interest rates have also seen a significant increase, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in O'Fallon appears to remain robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in O'Fallon will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $375,000 to $400,000, assuming a conservative annual growth rate of 2-3%. For average rent prices, we expect a steady increase, potentially reaching $1,250 to $1,300 by 2029, based on historical trends and accounting for inflation.
In summary, O'Fallon (zip code 63366) has demonstrated a strong and resilient housing market. The community has maintained high homeownership rates while experiencing significant growth in average home prices. The rental market, while smaller, has shown stability with slight fluctuations in average rent prices. Despite rising interest rates, the housing market continues to show strength, suggesting ongoing demand for housing in this growing Missouri city.
