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Zip Code 63461: Rising Home Values and Strong Ownership Trends in Palmyra, 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 63461, encompassing Palmyra in Missouri, presents an intriguing case study of housing trends in a small Midwestern community. This area has experienced fluctuations in homeownership rates and average home prices over the past decade, with a general trend towards increased homeownership and rising property values.
The homeownership rate in zip code 63461 has shown a notable increase from 73% in 2013 to 76% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices, which grew from $108,481 in 2013 to $197,085 in 2022, representing an impressive 81.7% increase over nine years. The correlation between rising home prices and increasing homeownership rates suggests a strong local housing market and potentially growing economic confidence among residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 63461. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 70% to 73%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates surprisingly continued to climb, reaching 76% in 2022. This trend suggests that other local factors, such as job growth or community development, may have outweighed the impact of rising interest rates on homeownership decisions.
Renter percentages in zip code 63461 have naturally mirrored the homeownership trends, decreasing from 27% in 2013 to 24% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. Starting at $629 in 2013, rents peaked at $745 in 2015 before declining to $597 in 2022. This fluctuation in rent prices, contrasting with the steady increase in home values, may have contributed to the shift towards homeownership as renting became less predictable or advantageous for some residents.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 63461. In 2023, the average home price reached $201,552, and in 2024, it further increased to $211,520. This represents a 7.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand for housing in the area.
Looking ahead, predictive models suggest that average home prices in zip code 63461 may continue to rise over the next five years, potentially reaching around $240,000 by 2029. This projection is based on the consistent upward trend observed since 2013. Average rent prices, given their historical volatility, are more challenging to predict. However, if the trend towards homeownership continues, rent prices may stabilize or experience modest growth, potentially reaching around $750 per month by 2029.
In summary, zip code 63461 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with homeownership rates continuing to rise even in the face of increasing interest rates. The divergence between steadily increasing home prices and fluctuating rent prices has likely contributed to the shift towards homeownership. As the community moves forward, it appears poised for continued growth in its housing market, with potential for further increases in both homeownership rates and property values.
