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Zip Code 64001: Resilient Homeownership Amid Rising Property Values in Rural 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 64001, located in Alma, Missouri, has experienced interesting fluctuations in population and housing dynamics over the past decade. This rural area, spanning 38.54 square miles, has seen shifts in homeownership rates and property values that reflect broader economic trends.
The homeownership rate in zip code 64001 has shown resilience, with a slight increase from 83% in 2016 to 87% in 2022. This trend coincides with a significant rise in average home prices, which more than doubled from $78,544 in 2012 to $179,096 in 2022. The steady increase in homeownership, despite rising prices, suggests a strong local preference for owning rather than renting.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, likely contributed to the sustained high levels of homeownership in zip code 64001. These low rates made mortgage financing more accessible, potentially encouraging more residents to purchase homes despite the rising prices.
The rental market in zip code 64001 has shown some volatility. The percentage of renters decreased from 17% in 2016 to 13% in 2022, while average rent prices fluctuated. Notably, average rent peaked at $948 in 2017 before decreasing to $626 in 2022. This decline in both the renter population and average rent prices could be attributed to the area's relatively stable population, which ranged from 466 to 499 residents between 2016 and 2022, and the strong preference for homeownership.
In 2023 and 2024, average home prices in zip code 64001 continued to rise, reaching $186,719 in 2023 and $189,028 in 2024. This represents a 4.3% increase from 2022 to 2023 and a further 1.2% increase from 2023 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-rate environment of previous years.
Looking ahead, based on the observed trends, we can forecast continued growth in average home prices for zip code 64001 over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $210,000 by 2029. The rental market may see a slight increase in average rents, potentially rising to around $700 per month by 2029, assuming economic conditions remain stable and the local population continues its modest growth trend.
In summary, zip code 64001 demonstrates a strong preference for homeownership, with rising property values and a resilient ownership rate. The area has weathered significant increases in home prices while maintaining high levels of owner-occupancy. The rental market, while smaller, has shown adaptability to local economic conditions. As interest rates have risen, it will be important to monitor how this affects the housing market dynamics in this rural Missouri community.
