Loading Content...
Zip Code 64701: Rising Home Values and Shifting Ownership Patterns in Harrisonville, Missouri
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 64701, located in Harrisonville, Missouri, presents an intriguing landscape of homeownership and rental trends over the past decade. This area has experienced notable fluctuations in both ownership percentages and average home prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 64701 has shown a general decline followed by a recent uptick. In 2013, the area boasted a high 73% homeownership rate. However, this figure dropped to its lowest point of 63% in 2016. Since then, there has been a gradual recovery, with the ownership rate reaching 69% by 2022. Interestingly, this trend in homeownership rates appears to have an inverse relationship with average home prices. As the average home price increased from $120,791 in 2013 to $146,878 in 2016, the homeownership rate decreased. This suggests that rising home prices may have made homeownership less accessible for some residents during this period.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 64701. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%. Despite these favorable borrowing conditions, homeownership rates declined, possibly due to the simultaneous increase in home prices. As interest rates began to rise more significantly from 2016 onwards, reaching 1.83% in 2018, the homeownership rate stabilized and then started to increase. This counterintuitive trend might be explained by other local economic factors or housing market dynamics specific to Harrisonville.
Renter percentages in zip code 64701 have fluctuated inversely to homeownership rates, as expected. The proportion of renters increased from 27% in 2013 to a peak of 37% in 2016, before declining to 31% in 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $912, which decreased to $851 in 2015. Rent prices then rose to $899 in 2017 before experiencing another dip to $833 in 2019. By 2022, the average rent had increased to $855. These fluctuations in rent prices don't show a clear correlation with renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may have influenced rental market dynamics.
Looking at more recent data, the average home price in zip code 64701 reached $262,111 in 2023 and further increased to $268,057 in 2024. This represents a significant rise from the 2022 average of $259,605. Concurrently, federal interest rates have also seen a substantial increase, rising from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. This combination of rising home prices and higher interest rates could potentially impact homeownership affordability in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 64701 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project that by 2029, average home prices could reach approximately $300,000 to $320,000. For rent prices, considering the historical fluctuations and recent trends, we estimate that average rents could increase to around $950 to $1,000 per month by 2029.
In summary, zip code 64701 has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics. The recent recovery in homeownership rates, coupled with steadily increasing home prices, suggests a resilient local real estate market. However, the impact of rising interest rates and continued home price appreciation may present challenges for potential homebuyers in the coming years. The rental market, while showing some volatility, appears to be stabilizing, which could provide alternative housing options for residents in this evolving market.
