Loading Content...
Zip Code 63876: Average Home Values and Ownership Trends in Senath, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 63876, located in Senath, Missouri, presents an interesting case study of homeownership and rental trends in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 63876 has shown some variability over the years. In 2013, the homeownership rate stood at 66%. It reached its peak in 2016 at 74% before experiencing a gradual decline. By 2022, the homeownership rate returned to 67%, almost identical to its 2013 level. Concurrently, average home prices in the area have shown a general upward trend. From 2017 to 2022, average home prices increased from $69,456 to $90,210, representing a substantial 29.9% growth over five years.
The relationship between federal interest rates and homeownership rates in this zip code aligns with typical patterns. As interest rates remained low between 2013 and 2016, hovering around 0.1% to 0.4%, homeownership rates increased from 66% to 74%. This trend supports the notion that lower interest rates often encourage homeownership due to more affordable financing options. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined slightly to 67%.
Renter percentages in zip code 63876 have fluctuated inversely to homeownership rates. The rental population decreased from 34% in 2013 to a low of 26% in 2016, before gradually increasing to 33% in 2022. Average rent prices have shown significant volatility during this period. In 2013, the average rent was $413, which increased to $655 in 2017, representing a substantial 58.6% increase. However, by 2022, average rent had decreased to $588, a 10.2% drop from its 2017 peak. These fluctuations in rent prices may be influenced by changes in local economic conditions and housing supply.
In 2023 and 2024, zip code 63876 experienced notable changes in the housing market. Average home prices declined from $90,210 in 2022 to $78,089 in 2023, a significant 13.4% decrease. This downward trend continued into 2024, with average home prices further dropping to $70,623, representing a 9.6% decrease from 2023. Concurrently, federal interest rates rose sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, based on recent trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may stabilize or show modest growth as the market adjusts to higher interest rates. We might expect average home prices to range between $72,000 and $85,000 by 2029. Average rent prices could potentially increase moderately, possibly reaching $625 to $675 per month, as demand for rentals may increase if homeownership becomes less affordable due to higher interest rates.
In summary, zip code 63876 has demonstrated resilience in homeownership rates despite fluctuations in the housing market. The area has seen significant growth in average home prices from 2017 to 2022, followed by a notable decline in 2023 and 2024. Rent prices have shown volatility, with a peak in 2017 followed by a decline. The recent sharp increase in interest rates has likely influenced the cooling of the housing market. Moving forward, the interplay between interest rates, housing affordability, and local economic factors will continue to shape the homeownership and rental landscapes in this Missouri community.
