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Zip Code 63445: Kahoka, Missouri's Evolving Housing Landscape - Average Home Values and Ownership Trends
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 63445, located in Kahoka, Missouri, presents an interesting case study of housing trends in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 63445 has shown a slight decline over the years, moving from 74% in 2013 to 69% in 2022. This shift coincides with changes in average home prices, which have seen modest growth in recent years. In 2022, the average home price in this area was $125,912, indicating a relatively affordable housing market compared to many urban areas across the country.
When examining the relationship between federal interest rates and homeownership rates, we observe some correlation. For instance, the period from 2013 to 2015 saw relatively low interest rates (0.11% to 0.13%), corresponding with higher homeownership rates of 71-74%. As interest rates began to rise more significantly from 2016 onwards, we see a gradual decline in homeownership percentages. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 63445 has shown interesting trends as well. The percentage of renters increased from 26% in 2013 to 31% in 2022, indicating a growing preference or necessity for rental housing. Average rent prices have fluctuated over this period, with notable increases in certain years. For example, the average rent rose from $542 in 2013 to $605 in 2022, representing an 11.6% increase over nine years. This rise in rental prices, coupled with the increase in renter percentage, suggests a tightening rental market despite the area's relatively stable population.
Looking at the most recent data, we see that in 2023, the average home price in zip code 63445 decreased slightly to $123,504, and in 2024, it further decreased to $120,794. This recent downturn in home prices coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contribute to the cooling of the housing market in this area.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or modest increase in average home prices, assuming interest rates normalize and economic conditions remain stable. For rental prices, a continued gradual increase is expected, driven by the growing renter population and overall housing demand in the area.
In summary, zip code 63445 has experienced a gradual shift towards a more balanced mix of homeowners and renters over the past decade. While homeownership rates have slightly decreased, both home prices and rental rates have shown overall growth, albeit with recent fluctuations. The interplay between interest rates, housing affordability, and demographic changes will likely continue to shape the housing market in this Missouri community in the coming years.
