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Zip Code 63628: Rising Home Values and Strong Ownership in Terre du Lac, 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 63628, located in Terre du Lac, Missouri, presents an intriguing case study of homeownership and housing market dynamics. This area has experienced notable shifts in ownership percentages and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 63628 has shown resilience, with a slight increase from 70% in 2019 to 75% in 2022. This trend coincides with a significant rise in average home prices, which grew from $132,032 in 2019 to $184,741 in 2022, representing a 39.9% increase over three years. The upward trajectory of home prices appears to have had a limited impact on homeownership rates, suggesting strong local demand for housing and potentially favorable economic conditions for residents.
Federal interest rates play a crucial role in homeownership trends. From 2019 to 2021, interest rates dropped sharply from 2.16% to 0.08%, which likely contributed to the increase in homeownership from 70% to 75% during this period. Lower interest rates typically make mortgages more affordable, encouraging home purchases. However, the subsequent rise in interest rates to 1.68% in 2022 did not immediately affect the homeownership rate, which remained steady at 75%, indicating other factors may be supporting the local housing market.
Renter percentages in zip code 63628 have inversely mirrored homeownership trends, decreasing from 30% in 2019 to 25% in 2022. Despite this decrease, average rent prices have shown a modest increase, rising from $707 in 2019 to $717 in 2022, a 1.4% increase. This suggests that while fewer residents are renting, those who do are facing slightly higher costs. The population has remained relatively stable during this period, increasing slightly from 16,246 in 2019 to 16,452 in 2022, which may have helped maintain a balance in the rental market despite the shift towards homeownership.
In 2023 and 2024, the housing market in zip code 63628 continued its upward trajectory. Average home prices rose to $189,686 in 2023 and further to $195,553 in 2024, representing a 5.9% increase over two years. This growth occurred despite a significant increase in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, yet the continued rise in home prices suggests strong underlying demand in this area.
Looking ahead, predictive models suggest that average home prices in zip code 63628 may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting the overall housing market trends and potential shifts in supply and demand for rental properties.
In summary, zip code 63628 has demonstrated a robust housing market characterized by increasing homeownership rates and rising home values. The area has shown resilience in the face of changing interest rates, with home prices continuing to appreciate even as borrowing costs have increased. The rental market, while shrinking in terms of occupancy, has maintained stable pricing. These trends point to a dynamic and potentially attractive real estate market in Terre du Lac, Missouri, with ongoing opportunities for both homeowners and investors.
