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Zip Code 63653: Rising Home Values and Ownership Trends in Leadwood, 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 63653, located in Leadwood, Missouri, presents an intriguing case study of housing market dynamics in a small urban setting. This area has experienced fluctuating homeownership rates and notable changes in average home and rent prices over the past decade, reflecting broader economic trends and local factors.
The ownership percentage in zip code 63653 has shown considerable variability, ranging from a low of 61% in 2021 to a high of 73% in 2016. This fluctuation coincides with significant changes in average home prices. In 2014, the average home price was $28,050, which steadily increased to $62,774 by 2022, representing a substantial 124% increase over eight years. This upward trend in home prices, however, did not consistently correlate with changes in homeownership rates. For instance, despite the peak in homeownership in 2016 at 73%, the average home price that year was $40,646, which was not the highest in the observed period.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 63653. The period from 2014 to 2021 saw historically low interest rates, ranging from 0.09% to 1.68%. These low rates generally coincided with higher homeownership percentages, particularly evident in 2015 and 2016 when ownership rates were 70% and 73% respectively. However, the relationship is not always direct, as other factors such as local economic conditions and housing supply also influence ownership rates.
Renter percentages in zip code 63653 have inversely mirrored homeownership rates, ranging from 27% to 38% between 2013 and 2022. Average rent prices have shown a general upward trend, increasing from $741 in 2013 to $755 in 2022, with some fluctuations in between. The peak average rent of $775 was observed in 2015, interestingly coinciding with a relatively high homeownership rate of 70%. Population changes have likely influenced these trends, with the population varying from 341 in 2011 to a peak of 495 in 2021, potentially impacting housing demand and, consequently, rent prices.
In 2023 and 2024, the housing market in zip code 63653 continued its upward trajectory. The average home price rose to $66,794 in 2023 and further increased to $73,868 in 2024, representing a 17.7% increase over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, potentially impacting affordability and homeownership rates.
Looking ahead, predictive models suggest a continued increase in both average home and rent prices for zip code 63653 over the next five years. Average home prices are projected to maintain their upward trend, potentially reaching around $90,000 by 2029. Average rent prices are expected to follow a similar pattern, potentially increasing to approximately $800 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market factors.
In summary, zip code 63653 has demonstrated a dynamic housing market characterized by fluctuating homeownership rates, steadily increasing average home prices, and gradually rising rent prices. The interplay between these factors, coupled with changing interest rates and population dynamics, presents a complex picture of a local real estate market responding to both internal and external economic forces.
