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Zip Code 64058: Rising Home Values and Ownership Trends in Sugar Creek, 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 64058, located in Sugar Creek, Missouri, presents an interesting case study of housing market dynamics over the past decade. This area has experienced notable fluctuations in homeownership rates and property values, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 64058 has shown considerable variability since 2013. Starting at 84% in 2013, it decreased to 71% by 2017, before rebounding to 81% in 2022. This trend coincides with significant changes in average home prices. In 2013, the average home price was $95,147, which steadily increased to $221,064 by 2022, representing a substantial 132% increase over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $166,772 to $221,064, a 32.6% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in this area. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which likely contributed to the initial high homeownership rate of 84% in 2013. As interest rates gradually increased, reaching 1.83% by 2018, we observed a corresponding decline in homeownership to 73%. However, the subsequent drop in interest rates to 0.08% in 2021 coincided with a rebound in homeownership to 81%, demonstrating the inverse relationship between interest rates and homeownership rates.
Renter percentages and average rent prices in zip code 64058 have shown an interesting correlation. The renter-occupied percentage increased from 16% in 2013 to a peak of 29% in 2017, before decreasing to 19% in 2022. During this period, average rent prices fluctuated, starting at $1,014 in 2013, reaching a high of $1,054 in 2018, and then decreasing to $933 in 2022. The population growth from 6,541 in 2013 to 6,549 in 2022 suggests that changes in rental demand were more influenced by shifts between renting and owning rather than significant population changes.
Looking at the most recent data, the average home price in zip code 64058 reached $230,394 in 2023 and further increased to $237,717 in 2024. This represents a 7.5% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels in over a decade. These high interest rates may impact future homeownership rates and property values in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64058 will continue to rise, albeit at a more moderate pace. Projections suggest average home prices could reach approximately $275,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching around $1,100 per month by 2029. These predictions assume a gradual stabilization of interest rates and continued economic growth in the region.
In summary, zip code 64058 has experienced significant fluctuations in homeownership rates and property values over the past decade. The area has shown resilience, with homeownership rates rebounding to 81% despite rising home prices. The inverse relationship between federal interest rates and homeownership rates has been evident, while rent prices have shown less volatility. The recent sharp increase in interest rates, coupled with steadily rising home prices, will likely shape the housing market dynamics in this area for the coming years.
