Loading Content...
Zip Code 65203: Rising Home Values and Shifting Ownership in Columbia, 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
Columbia, Missouri, zip code 65203, has experienced significant demographic and real estate market changes over the past decade. This area has seen a steady increase in population and fluctuations in homeownership rates, coupled with rising average home prices and rent costs.
The homeownership rate in zip code 65203 has shown an interesting trend over the years. In 2013, the owner-occupied rate was 60%, which remained stable until 2015. However, there was a slight decline to 59% in 2016, which persisted through 2019. Interestingly, from 2020 onwards, there was a notable increase in homeownership, reaching 63% by 2022. This upward trend in homeownership coincided with a significant rise in average home prices. In 2013, the average home price was $202,265, which steadily increased to $326,370 by 2022, representing a substantial 61.4% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code presents an intriguing pattern. Despite historically low interest rates from 2013 to 2015 (ranging from 0.09% to 0.13%), homeownership rates remained stable at 60%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates counter-intuitively increased to 63%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a more significant role in driving homeownership in this area.
Renter percentages in zip code 65203 have shown an inverse relationship to homeownership rates. In 2013, the renter-occupied rate was 39%, which increased slightly to 41% by 2019. However, from 2020 onwards, there was a decrease in the percentage of renters, dropping to 37% by 2022. Average rent prices have generally trended upwards during this period. In 2013, the average rent was $983, which increased to $1,094 by 2022, representing an 11.3% increase. It's worth noting that the population of the zip code grew from 54,810 in 2013 to 59,620 in 2022, potentially contributing to the upward pressure on both home prices and rents.
In 2023 and 2024, the average home prices in zip code 65203 continued their upward trajectory. The average home price reached $341,385 in 2023 and further increased to $347,660 in 2024. This represents a 4.6% and 1.8% year-over-year increase respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from previous years.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in both average home prices and rent costs in zip code 65203 over the next five years. Average home prices are projected to maintain a moderate but steady increase, potentially reaching around $400,000 by 2029. Average rent prices are also expected to rise, albeit at a slower pace, potentially approaching $1,300 per month in the same timeframe.
In summary, zip code 65203 in Columbia, Missouri, has demonstrated resilience and growth in its real estate market. The area has seen a notable increase in homeownership rates despite rising home prices and interest rates. The rental market has also shown strength, with increasing average rents alongside population growth. These trends suggest a robust and dynamic real estate environment in this zip code, with potential for continued growth in both the ownership and rental sectors.
