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Zip Code 63383: Rising Home Values and Declining Ownership in Warrenton, 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 63383, located in Warrenton, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual decline in homeownership percentages alongside rising average home prices, while rental rates and average rent prices have shown fluctuating trends. The homeownership rate in zip code 63383 has decreased from 83% in 2013 to 73% in 2022, indicating a 10 percentage point decline over nine years. Simultaneously, average home prices have risen significantly, from $149,227 in 2013 to $248,574 in 2022, representing a 66.6% increase. This inverse relationship suggests that rising home prices may have contributed to the decrease in homeownership rates, as affordability became a growing concern for potential buyers.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which coincided with relatively stable homeownership rates around 82%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more steeply, dropping to 73% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
The rental market in zip code 63383 has shown interesting trends as well. The percentage of renters increased from 16% in 2013 to 27% in 2022, an 11 percentage point rise. Interestingly, average rent prices have not followed a consistent upward trajectory during this period. Average rent peaked at $893 in 2014 before declining to $803 in 2019, then rising again to $857 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex interplay of factors affecting the rental market, possibly including changes in housing supply and local economic conditions.
Looking at the most recent data, average home prices in zip code 63383 continued to rise, reaching $255,455 in 2023 and $265,057 in 2024. This represents a 2.8% increase from 2022 to 2023 and a further 3.8% increase from 2023 to 2024. Simultaneously, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 63383 will continue to rise, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $900 per month by 2029, assuming the recent stabilization in rent prices continues.
In summary, zip code 63383 has experienced a notable decline in homeownership rates coupled with significant increases in average home prices over the past decade. The rental market has grown, with fluctuating average rent prices. Recent data shows continued growth in home prices alongside rising interest rates, which may influence future market dynamics. The area is expected to see further increases in both home prices and rents over the next five years, potentially affecting housing affordability and ownership patterns in this Missouri community.
