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Zip Code 65068: Rural Prairie Home's Rising Home Values and Strong Ownership Rates
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
Prairie Home, located in zip code 65068 in Missouri, is a small community that has experienced gradual growth over the past decade. This area has maintained a consistently high rate of homeownership, with a slight upward trend in recent years. The housing market in this zip code has shown interesting dynamics in terms of ownership percentages, average home prices, and average rent prices.
The homeownership rate in Prairie Home has seen a steady increase from 85% in 2013 to 89% in 2022. This upward trend in homeownership coincides with fluctuations in average rent prices. In 2013, the average rent was $809, which increased to a peak of $864 in 2016 before declining to $642 in 2022. This inverse relationship suggests that as rents became more volatile, more residents may have opted for homeownership for stability.
Federal interest rates have played a significant role in shaping homeownership trends in Prairie Home. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.11% to 1.68%. These low rates likely contributed to the increase in homeownership from 85% to 89% during this time, as they made mortgage financing more accessible and affordable for potential buyers.
The renter population in Prairie Home has decreased from 15% in 2013 to 11% in 2022. This decline in renters correlates with the fluctuations in average rent prices. The peak average rent of $864 in 2016 coincided with a renter percentage of 15%, while the lower average rent of $642 in 2022 corresponded with a reduced renter population of 11%. This suggests that as rents became more affordable, some renters may have transitioned to homeownership, especially given the favorable interest rate environment.
In 2023 and 2024, the housing market in Prairie Home has shown significant changes. The average home price in 2023 was $251,272, increasing to $252,976 in 2024. This represents a modest year-over-year increase of about 0.68%. Interestingly, this growth in home prices has occurred despite a substantial rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers in the coming years.
Looking ahead, predictive models suggest that average home prices in Prairie Home may continue to rise moderately over the next five years, potentially reaching around $260,000 by 2029. However, this growth may be tempered by the higher interest rate environment. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching around $700 per month by 2029, as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, Prairie Home has demonstrated a strong trend towards homeownership, with rates increasing from 85% to 89% between 2013 and 2022. This trend has been supported by historically low interest rates and fluctuations in rental prices. However, the recent sharp increase in interest rates and the steady rise in home prices may present new challenges for the local housing market. The community's ability to maintain its high homeownership rate while navigating these changing economic conditions will be a key factor in shaping its housing landscape in the coming years.
