Loading Content...
Zip Code 64686: Rural Missouri Village Sees Surge in Home Values and Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 64686, located in Utica, Missouri, presents an interesting case study of housing trends in a small rural community. This area has experienced significant fluctuations in homeownership rates and average home prices over the past decade, reflecting the dynamic nature of its real estate market.
The ownership percentage in zip code 64686 has shown a general upward trend, rising from 84% in 2017 to 93% in 2022. This increase in homeownership coincides with a notable rise in average home prices. In 2017, the average home price was $64,572, which steadily increased to $91,695 by 2022, representing a substantial 42% growth over five years. This positive correlation between homeownership rates and home prices suggests a strong local demand for property ownership, despite rising costs.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 64686. The period from 2017 to 2020 saw relatively low interest rates, ranging from 1% to 2.16%, which likely contributed to the increased homeownership rates observed during this time. For instance, as interest rates dropped from 1.83% in 2018 to 0.38% in 2020, homeownership in the area rose from 88% to 90%, illustrating how lower financing costs can encourage property purchases.
The renter percentage in zip code 64686 has shown an inverse relationship to homeownership rates, decreasing from 15% in 2017 to 7% in 2022. The declining renter percentage, coupled with the area's decreasing population (from 267 in 2017 to 168 in 2022), suggests a potential shift in the local housing market dynamics, possibly indicating a preference for homeownership or outmigration of renters.
In 2023 and 2024, the average home prices in zip code 64686 continued their upward trajectory, reaching $94,998 and $96,179, respectively. This represents a further 4.9% increase from 2022 to 2024. Interestingly, this price growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests that local factors may be outweighing the typical dampening effect of higher interest rates on home prices in this area.
Looking ahead, based on the observed trends, we can forecast continued growth in average home prices for zip code 64686 over the next five years. Assuming a similar rate of increase as seen in recent years, average home prices could potentially reach around $110,000 by 2029. However, this growth may be moderated by the current high interest rates if they persist. As for rent prices, the trend of decreasing renter percentages might lead to stabilized or slightly decreased average rents in the coming years, assuming the supply of rental properties remains constant or decreases.
In summary, zip code 64686 has demonstrated a clear trend towards increased homeownership and rising home values over the past decade. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. The declining population and renter percentage suggest a changing demographic landscape, which could have long-term implications for the local real estate market. These trends paint a picture of a small community undergoing significant changes in its housing dynamics, with a strong preference for homeownership emerging as a key characteristic of the local market.
