Loading Content...
Zip Code 64016: Rising Home Values and Ownership Rates in Independence, 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 64016, located in Independence, Missouri, has experienced notable shifts in homeownership rates and property values over the past decade. This area has shown a general trend toward increased homeownership and rising average home prices, with some fluctuations in average rent prices.
The ownership percentage in zip code 64016 has seen a significant increase from 2013 to 2022. In 2013, the homeownership rate was 76%, and by 2022, it had risen to 81%. This 5% increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $101,341, and by 2022, it had risen dramatically to $219,222, representing a 116% increase over this period. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 64016. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, between 72% and 76%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 76% in 2019. Interestingly, the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a notable jump in homeownership to 81% and 83%, likely due to more affordable financing options.
The renter percentage in zip code 64016 has inversely mirrored the homeownership trends, decreasing from 24% in 2013 to 19% in 2022. Average rent prices, however, have shown some volatility. In 2013, the average rent was $859, which increased to $948 in 2016, representing a 10.4% rise. After a slight dip to $909 in 2019, average rent prices rebounded to $950 by 2022, showing a 4.5% increase from 2019 to 2022. This trend suggests that while the proportion of renters has decreased, those who continue to rent are facing higher costs.
In 2023 and 2024, the average home prices in zip code 64016 continued their upward trajectory. The average home price reached $227,170 in 2023 and further increased to $232,885 in 2024, representing a 2.5% year-over-year growth. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially indicating strong demand and limited supply in the local housing market.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 64016 will likely continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $260,000 to $270,000 by 2029. Average rent prices, which have shown more stability in recent years, may see moderate increases, potentially reaching $1,050 to $1,100 per month by 2029.
In summary, zip code 64016 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. The rental market, while shrinking in terms of the percentage of renters, has seen modest increases in average rent prices. These trends suggest a robust and evolving housing market in this part of Independence, Missouri.
