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Zip Code 64077: Soaring Home Values and Ownership Rates in Orrick, 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 64077, located in Orrick, Missouri, has experienced significant changes in homeownership rates and property values over the past decade. This 66.8 square mile area has seen a notable increase in homeownership alongside rising average home prices and rent costs. The ownership percentage in zip code 64077 has shown a steady upward trend, rising from 79% in 2015 to 90% in 2022. This substantial increase in homeownership coincides with a remarkable growth in average home prices. In 2012, the average home price was $59,759, which more than tripled to $202,368 by 2022. This correlation suggests that as property values increased, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2012 to 2016, when interest rates remained extremely low (ranging from 0.09% to 0.4%), homeownership rates increased from 82% to 89%. This period of low interest rates likely made mortgages more affordable, encouraging more residents to purchase homes. As interest rates began to rise more significantly from 2017 onwards, the rate of increase in homeownership slowed but continued to climb, reaching 90% by 2022.
Conversely, the percentage of renters in zip code 64077 has decreased from 21% in 2015 to 10% in 2022. Despite this decline, average rent prices have shown an overall upward trend. The average rent increased from $768 in 2013 to $951 in 2022, representing a 23.8% increase over nine years. This trend suggests that while fewer people are renting, those who do are paying higher prices, possibly due to a combination of factors including improved rental property quality and overall market appreciation.
In 2023 and 2024, the upward trend in average home prices continued, reaching $209,608 in 2023 and $218,122 in 2024. This represents a 3.6% increase from 2022 to 2023 and a further 4.1% increase from 2023 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can forecast continued growth in both average home prices and average rent costs over the next five years. Average home prices are projected to increase by approximately 5-7% annually, potentially reaching around $290,000 by 2029. Average rent prices are expected to rise at a similar rate, possibly reaching $1,200 per month by 2029. However, these projections may be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, zip code 64077 has experienced a significant increase in homeownership rates, rising from 79% to 90% between 2015 and 2022. This trend has been accompanied by substantial growth in average home prices, which more than tripled from 2012 to 2022. Despite a decreasing percentage of renters, average rent prices have also shown an upward trend. The interplay between low interest rates and increasing property values has likely contributed to the area's growing preference for homeownership over renting.
