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Zip Code 64503: Rising Home Values and Stable Ownership in St. Joseph's Pony Express Hub
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 64503, located in St. Joseph, Missouri, has seen interesting shifts in homeownership and housing prices over the past decade. This area has maintained a relatively stable ownership rate, hovering around 65-67%, while experiencing notable fluctuations in average home and rent prices.
The homeownership rate in zip code 64503 has shown a slight upward trend, increasing from 65% in 2014 to 66% in 2022. This modest growth coincides with a significant rise in average home prices. In 2014, the average home price was $100,217, which steadily increased to $139,420 by 2022, representing a 39% increase over eight years. This trend suggests that despite rising home prices, residents in this area have maintained their ability to purchase homes, possibly due to factors such as income growth or favorable lending conditions.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2014 to 2022 saw historically low interest rates, ranging from 0.09% to 1.68%. These low rates likely contributed to the stability and slight increase in homeownership rates, as they made mortgages more affordable for potential buyers. For instance, the homeownership rate reached 67% in 2021 when the federal interest rate was at a mere 0.08%, the lowest in the observed period.
Renter percentages in zip code 64503 have remained relatively stable, slightly decreasing from 35% in 2014 to 34% in 2022. During this period, average rent prices showed considerable volatility. Starting at $728 in 2014, rents peaked at $821 in 2017 before decreasing to $735 in 2022. This fluctuation in rent prices, coupled with the stable renter percentage, suggests that the rental market in this area has remained competitive and responsive to local economic conditions and housing demand.
Moving to more recent data, the average home price in zip code 64503 continued its upward trajectory, reaching $144,468 in 2023 and further increasing to $149,561 in 2024. This represents a 7.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen dramatically, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers, potentially impacting future homeownership rates in the area.
Looking ahead, our predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $175,000 by 2029. Rent prices are expected to follow a similar trend, with an estimated annual increase of 2-3%, potentially reaching an average of $850-$900 per month by 2029.
In summary, zip code 64503 has demonstrated resilience in homeownership rates despite rising home prices. The area has benefited from historically low interest rates, which have supported homeownership. However, recent sharp increases in interest rates may challenge this trend. The rental market has shown volatility but remains a significant portion of the housing landscape. As both home prices and rents are projected to continue rising, affordability may become an increasingly important issue for residents in this zip code.
