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Zip Code 64506: Rising Home Values and Stable Ownership in St. Joseph, 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 64506, located in St. Joseph, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen fluctuations in its population and housing market, reflecting broader economic trends and local dynamics. The homeownership rate in zip code 64506 has shown a slight decline over the years, moving from 63% in 2018 to 58% in 2022. This trend coincides with an overall increase in average home prices. In 2013, the average home price was $169,378, which steadily rose to $233,958 by 2022, representing a significant 38% increase over this period. The most substantial jump occurred between 2020 and 2021, with average home prices surging from $192,851 to $212,919, a 10.4% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 60%. However, as interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, there was a slight uptick in homeownership to 63%. This counterintuitive trend might be attributed to other local economic factors or a rush to purchase homes before further rate increases.
The renter population in zip code 64506 has shown a corresponding increase as homeownership rates declined. The percentage of renters rose from 37% in 2018 to 41% in 2022. Interestingly, average rent prices have not shown a consistent upward trend despite this increase in demand. In 2013, the average rent was $881, which fluctuated over the years, reaching $945 in 2021 before dropping to $883 in 2022. This volatility in rent prices, despite the increasing renter population, could be influenced by various factors such as local economic conditions, housing supply, or policy changes.
Looking at the most recent data, the average home price in zip code 64506 reached $242,128 in 2023 and further increased to $247,076 in 2024. This represents a continued upward trend in home values. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast future trends, we can anticipate that average home prices in zip code 64506 will likely continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. The average home price could potentially reach around $275,000 by 2029. Rent prices, which have shown more volatility, are harder to predict but may stabilize or see moderate increases, potentially reaching an average of $1,000 per month by 2029 if current trends continue.
In summary, zip code 64506 has experienced a gradual shift towards renting, with a corresponding increase in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of the local real estate market. The recent sharp increase in interest rates, coupled with rising home prices, may continue to influence homeownership trends and affordability in the coming years.
