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Zip Code 63877: Rising Home Values and Resilient Ownership Rates in Steele, 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
Steele, Missouri, located in zip code 63877, is a small urban area that has experienced significant demographic shifts over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in this community. From 2013 to 2022, homeownership rates in Steele remained relatively stable, with a slight overall decrease. In 2013, 60% of residents owned their homes, while by 2022, this figure had decreased slightly to 59%. During this period, average home prices showed a notable increase. From 2019 to 2022, average home prices rose from $92,174 to $105,993, representing a 15% increase over just three years.
The relationship between federal interest rates and homeownership rates in Steele follows a generally expected pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates stayed relatively stable. However, when interest rates rose sharply to 1.68% in 2022, we saw a slight uptick in homeownership to 59%, possibly due to residents rushing to purchase homes before rates increased further.
Renter percentages in Steele have shown a slight increase over the years, rising from 40% in 2013 to 41% in 2022. This trend coincides with changes in average rent prices. In 2013, the average rent was $581, which increased to $597 by 2022, representing a modest 2.8% increase over nine years. It's worth noting that there were fluctuations in between, with average rent reaching a peak of $684 in 2021 before decreasing in 2022. These changes in rent prices and renter percentages occurred against a backdrop of declining population, from 4,682 in 2013 to 3,720 in 2022.
Looking at more recent data, average home prices in Steele continued to rise in 2023, reaching $108,924. However, in 2024, there was a slight decrease to $103,743. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Steele may experience modest growth, potentially reaching around $115,000 by 2029. This prediction takes into account the recent price fluctuations and the impact of higher interest rates. For average rent prices, we project a gradual increase, potentially reaching approximately $650 by 2029, assuming the population stabilizes and demand for rental properties remains steady.
In summary, Steele has experienced a slight shift towards renting over the past decade, with homeownership rates decreasing marginally. Average home prices have shown significant growth, particularly from 2019 to 2022, while average rent prices have seen more modest increases. The recent rise in interest rates appears to be influencing the housing market, potentially slowing down home price growth. Moving forward, we expect continued but moderate growth in both average home prices and rent prices in zip code 63877.
