Loading Content...
Zip Code 64854: Average Home Values and Ownership Trends in Noel, 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 64854, encompassing Noel in Missouri, presents an intriguing case study of housing dynamics in a small urban area. This zip code has experienced significant fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local demographic shifts.
From 2013 to 2022, the homeownership rate in zip code 64854 saw a notable decline. In 2013, 55% of housing units were owner-occupied, but by 2022, this figure had decreased to 49%. This shift coincided with a substantial increase in average home prices. The average home price in 2019 was $110,280, rising dramatically to $162,977 by 2022, representing a 47.8% increase over just three years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, fluctuating between 55% and 58%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined, dropping to 49% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Conversely, the renter population in zip code 64854 has grown. The percentage of renter-occupied housing units increased from 45% in 2013 to 51% in 2022. This rise in renters coincided with an overall increase in average rent prices. In 2013, the average rent was $561, which increased to $630 by 2022, representing a 12.3% increase. It's worth noting that there was a significant spike in average rent in 2021, reaching $744, before moderating in 2022. This temporary surge could be attributed to various factors, including population growth, which increased from 4,817 in 2020 to 5,384 in 2021.
Looking at the most recent data, the average home price in zip code 64854 for 2023 was $159,244, showing a slight decrease from 2022. However, in 2024, the average home price has risen slightly to $160,137. This modest increase occurs despite the federal interest rate climbing to 5.33% in 2024, up from 5.02% in 2023. These figures suggest a resilient housing market in the face of rising interest rates.
Applying predictive models to forecast 5-year trends, we anticipate a continued moderate increase in average home prices, potentially reaching around $175,000 by 2029. Average rent prices are also expected to rise, potentially surpassing $700 by 2029. These projections assume steady economic growth and no major disruptions to the local housing market.
In summary, zip code 64854 has experienced a shift towards a renter-majority population over the past decade, coinciding with significant increases in both average home prices and rent. Despite rising interest rates, the housing market has shown resilience, with home prices continuing to trend upward. The area's growing population and changing demographics suggest ongoing demand for both rental and owner-occupied housing, likely sustaining the upward pressure on housing costs in the coming years.
