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Zip Code 64012: Rising Home Values and Shifting Ownership in Belton, 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 64012, located in Belton, Missouri, has experienced notable changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown resilience and growth, with a population increase from 26,786 in 2010 to 28,318 in 2022, indicating a steady influx of residents.
The homeownership rate in zip code 64012 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate stood at 72%, gradually decreasing to 68% by 2022. This minor decline suggests a shift towards renting, albeit a modest one. Concurrently, average home prices in the area have shown a significant upward trend. In 2010, the average home price was $135,909, which dropped to a low of $113,906 in 2013 before beginning a steady climb. By 2022, the average home price had reached $251,354, representing an impressive 85% increase from 2010 to 2022.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally expected pattern. As interest rates remained low from 2013 to 2016 (below 0.5%), the homeownership rate held relatively steady around 70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership to 68%. This trend aligns with the principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 64012 have shown a gradual increase, moving from 28% in 2013 to 32% in 2022. This rise in renting coincides with an overall increase in average rent prices. In 2013, the average rent was $1,108, which rose to $1,150 by 2022, representing a 3.8% increase. It's worth noting that there was a significant spike in average rent to $1,288 in 2021, possibly influenced by the broader economic conditions of that year, before settling back to $1,150 in 2022.
Looking at the most recent data, the average home price in zip code 64012 continued to rise, reaching $255,677 in 2023 and further increasing to $260,391 in 2024. This represents a 1.8% increase from 2023 to 2024, indicating a continued, albeit slower, appreciation in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64012 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic indicators, we project average home prices could reach approximately $290,000 to $310,000 by 2029. For average rent prices, the forecast suggests a continued upward trend, potentially reaching $1,300 to $1,400 per month by 2029, assuming consistent economic growth and demand in the area.
In summary, zip code 64012 has demonstrated a robust housing market with steadily increasing average home prices and a slight shift towards renting. The area has maintained a relatively high homeownership rate despite rising home prices and recent increases in interest rates. The consistent population growth and rising property values indicate a desirable location for both homeowners and renters, with potential for continued appreciation in both the home purchase and rental markets in the coming years.
