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Zip Code 64083: Rising Home Values and Steady Ownership in Raymore, 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 64083, located in Raymore, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 64083 has remained relatively stable over the years, with a slight downward trend. In 2013, the homeownership rate was 83%, which decreased to 79% by 2022. This slight decline coincides with an overall increase in average home prices. In 2013, the average home price was $170,456, which rose steadily to reach $337,956 by 2022, representing a substantial 98% increase over this period. This trend suggests that while homeownership remains high in the area, rising home prices may be making it more challenging for some residents to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 64083. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 80-83%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership rates, dropping to 79% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options, while higher rates can make mortgages less accessible.
The rental market in zip code 64083 has shown interesting trends as well. The percentage of renters increased from 15% in 2013 to 21% in 2022, indicating a growing demand for rental properties. Interestingly, average rent prices have remained relatively stable during this period, with some fluctuations. In 2013, the average rent was $1,313, which peaked at $1,347 in 2015 before settling at $1,296 in 2022. This stability in rent prices, despite the increase in the renter population, suggests that the local rental market has been able to absorb the growing demand without significant price pressures.
Looking at the most recent data for 2023 and 2024, we see that average home prices in zip code 64083 have continued to rise, albeit at a slower pace. The average home price in 2023 was $340,029, increasing slightly to $341,059 in 2024. This represents a modest 0.3% increase year-over-year, indicating a potential stabilization in the housing market. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may contribute to a cooling effect on home price growth and potentially impact future homeownership rates.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64083 will continue to rise, but at a more moderate pace compared to the rapid growth seen in previous years. The average home price is projected to reach approximately $370,000 by 2029. For rent prices, the forecast suggests a gradual increase, with average rents potentially reaching around $1,400 by 2029. These projections take into account historical trends, current market conditions, and the potential impact of higher interest rates on housing demand.
In summary, zip code 64083 has experienced a gradual shift towards a slightly higher proportion of renters, coupled with substantial growth in average home prices over the past decade. The stability of rent prices despite increased demand for rentals is noteworthy. Recent data shows a potential slowdown in home price growth, likely influenced by rising interest rates. Moving forward, the area is expected to see continued, but more moderate, growth in both home prices and rents, reflecting a maturing and potentially stabilizing housing market.
