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Zip Code 63660: Rising Homeownership and Fluctuating Home Values in Potosi, 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
Potosi, located in zip code 63660 in Missouri, has experienced notable shifts in homeownership and housing trends over the past decade. This small city, known for its rich mining history, has seen a significant increase in homeownership rates alongside fluctuating average home and rent prices.
The ownership percentage in Potosi has shown a strong upward trend, rising from 70% in 2013 to 84% in 2022. This substantial increase in homeownership coincided with varying average home prices. The average home price in 2021 was $153,872, increasing to $166,967 in 2022, representing an 8.5% growth. This trend suggests a growing preference for homeownership in the area, despite rising property values.
The relationship between federal interest rates and homeownership rates in Potosi follows the general economic principle that lower interest rates tend to encourage homeownership. From 2013 to 2021, when interest rates were historically low, ranging from 0.08% to 1.83%, we saw a significant increase in homeownership from 70% to 83%. This correlation indicates that the low-interest-rate environment likely contributed to making homeownership more accessible for Potosi residents.
Conversely, the renter percentage in Potosi has decreased from 29% in 2013 to 16% in 2022. Despite this decline, average rent prices have shown some volatility. The average rent increased from $534 in 2013 to $594 in 2021, representing an 11.2% increase over eight years. However, there was a decrease to $550 in 2022, a 7.4% drop from the previous year. These fluctuations in rent prices, coupled with the decreasing renter population, suggest a complex rental market influenced by factors such as housing availability and local economic conditions.
In 2023 and 2024, we observe some interesting developments in the housing market. The average home price in Potosi decreased to $157,677 in 2023, a 5.6% drop from 2022. However, it rebounded slightly to $162,422 in 2024, a 3% increase from 2023. This recent uptick occurs despite the significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, potentially impacting homebuying decisions.
Looking ahead, based on current trends and economic indicators, we can forecast potential 5-year trends for average home and rent prices in Potosi. Average home prices are likely to continue their overall upward trajectory, albeit at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $180,000 to $190,000 by 2029. For rent prices, the forecast suggests a potential stabilization or slight increase, possibly reaching an average of $600 to $625 per month by 2029, assuming steady economic growth and continued demand for rental properties.
In summary, Potosi has experienced a significant shift towards homeownership, with ownership rates increasing by 14 percentage points from 2013 to 2022. This trend occurred alongside fluctuating but generally increasing average home prices. The rental market has seen a decrease in the percentage of renters, with volatile rent prices. Recent data from 2023 and 2024 shows a slight rebound in home prices despite rising interest rates, indicating the resilience of the local housing market. These trends paint a picture of a changing housing landscape in Potosi, with a strong preference for homeownership and a dynamic property market.
