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Zip Code 63547: Rising Home Values and Ownership Trends in Rural Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 63547, located in Hurdland, Missouri, presents an interesting case study of homeownership and rental trends in a small rural community. Over the past decade, this area has experienced notable shifts in its housing market, with a general trend towards increased homeownership and fluctuating average rent prices.
The percentage of owner-occupied homes in zip code 63547 has shown a consistent upward trend from 2013 to 2022. In 2013, the homeownership rate stood at 73%, and by 2022, it had increased to 84%. This significant rise of 11 percentage points indicates a growing preference for homeownership in the area. Interestingly, this trend persisted despite the lack of available average home price data for most of the period, suggesting that other factors, such as community stability or local economic conditions, may have influenced this shift.
The relationship between federal interest rates and homeownership rates in zip code 63547 appears to follow the general principle that lower interest rates encourage homeownership. From 2013 to 2020, when interest rates were historically low, ranging from 0.11% to 0.38%, the area saw a steady increase in homeownership from 73% to 86%. This correlation suggests that the favorable financing conditions during this period may have contributed to the rising homeownership rates in the community.
Conversely, the percentage of renter-occupied homes in zip code 63547 has decreased over time, from 27% in 2013 to 16% in 2022. This decline in renters aligns with the increase in homeownership. Average rent prices, however, have shown volatility. In 2013, the average rent was $470, which decreased to $330 in 2014. The average rent then gradually increased to $574 in 2020, before slightly declining to $572 in 2022. These fluctuations in rent prices, coupled with the declining renter population, suggest a complex rental market dynamic in the area.
As of 2024, the average home price in zip code 63547 is $160,043, marking the first available data point for home prices in this area. This figure provides a baseline for understanding the local housing market value. Concurrently, the federal interest rate in 2024 stands at 5.33%, which is significantly higher than the rates observed during the period of increasing homeownership from 2013 to 2020.
Looking ahead, predictive models suggest that average home prices in zip code 63547 may continue to rise moderately over the next five years, potentially reaching around $175,000 by 2029. This projection is based on the current market value and assumes a continuation of the area's economic stability. Average rent prices are forecasted to maintain their upward trend, potentially reaching approximately $650 by 2029, reflecting a gradual increase in line with historical patterns.
In summary, zip code 63547 has demonstrated a strong trend towards homeownership over the past decade, with the rate increasing from 73% to 84% between 2013 and 2022. This shift occurred during a period of historically low interest rates, which likely facilitated home purchases. The rental market has shown more volatility, with decreasing occupancy but fluctuating prices. The recent data point of $160,043 for average home prices in 2024 establishes a benchmark for future market analysis. As interest rates have risen significantly in recent years, it will be crucial to monitor how this affects the continuing trends in homeownership and rental markets in this rural Missouri community.
