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Zip Code 64759: Average Home Values and Ownership Trends in Lamar, 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
Lamar, located in zip code 64759 in Missouri, has experienced notable shifts in its housing market over the past decade. This area, known for its small-town charm and agricultural heritage, has seen fluctuations in homeownership rates, average home prices, and average rent prices that reflect broader economic trends and local market dynamics.
The homeownership rate in Lamar has shown a general decline from 2013 to 2022. In 2013, the homeownership rate stood at 76%, but by 2022, it had decreased to 65%. This 11 percentage point drop coincided with a significant increase in average home prices. From 2016 to 2022, average home prices rose from $124,489 to $171,069, representing a substantial 37.4% increase over six years.
The relationship between federal interest rates and homeownership rates in Lamar follows a well-established trend. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate initially declined but then stabilized around 65-68% from 2018 to 2022. This stability in homeownership, despite rising home prices, can be attributed to the affordability of financing options during this period of low interest rates.
Conversely, the percentage of renters in Lamar increased from 24% in 2013 to 35% in 2022, mirroring the decline in homeownership. This shift coincided with a rise in average rent prices. In 2013, the average rent was $502, which increased to $630 by 2022, representing a 25.5% increase over nine years. The population of Lamar decreased slightly during this period, from 8,196 in 2013 to 7,527 in 2022, suggesting that the increase in rental demand was not driven by population growth but rather by shifting housing preferences or economic factors.
In 2023 and 2024, the housing market in Lamar continued to evolve. Average home prices rose to $174,111 in 2023 and further increased to $178,779 in 2024, showing a continued upward trend. Simultaneously, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the previous years' low rates. This rise in interest rates could potentially impact homeownership trends and housing affordability in the coming years.
Looking ahead, predictive models suggest that average home prices in Lamar may continue to rise over the next five years, potentially reaching around $200,000 by 2029 if current trends persist. Average rent prices are also expected to increase, possibly surpassing $700 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Lamar has experienced a decline in homeownership rates coupled with rising average home prices and rents over the past decade. The recent sharp increase in interest rates, combined with the ongoing rise in housing costs, may pose challenges for potential homebuyers in the coming years. The rental market is likely to remain strong, with continued demand and increasing average rents reflecting the shift towards renting in this community.
