Loading Content...
Zip Code 65256: Remarkable Shift in Homeownership and Housing Values in Harrisburg, 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
Harrisburg, located in zip code 65256 in Missouri, has experienced significant changes in its housing market over the past decade. This small community has seen notable shifts in homeownership rates and property values, reflecting broader economic trends and local dynamics.
The ownership percentage in Harrisburg has shown a remarkable upward trend, increasing from 84% in 2013 to an impressive 96% in 2022. This substantial rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $163,639, which steadily climbed to $350,359 by 2022, representing a 114% increase over this period. The most dramatic jump occurred between 2020 and 2021, when average home prices surged from $247,724 to $299,127, a 20.7% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in Harrisburg. The period of historically low interest rates from 2013 to 2021, where rates remained below 1% for several years, likely contributed to the increase in homeownership. For instance, as interest rates dropped from 1% in 2017 to 0.08% in 2021, homeownership rates rose from 86% to 96%. This correlation suggests that lower interest rates made mortgages more affordable, encouraging more residents to purchase homes.
Conversely, the renter percentage in Harrisburg has decreased dramatically, from 16% in 2013 to just 4% in 2022. Despite this decline in the renter population, average rent prices have shown an overall increasing trend, albeit with some fluctuations. The average rent price rose from $779 in 2013 to $847 in 2022, peaking at $854 in 2021. This trend suggests that while fewer people are renting, those who do are paying higher prices, possibly due to a limited supply of rental properties in the area.
In 2023, the average home price in Harrisburg reached $358,734, marking a 2.4% increase from 2022. However, 2024 has seen a slight decrease to $351,330, a 2% drop from the previous year. This recent dip coincides with a significant rise in federal interest rates, which increased from 5.02% in 2023 to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the local housing market.
Looking ahead, predictive models suggest that average home prices in Harrisburg may experience moderate growth over the next five years, potentially reaching around $380,000 by 2029. This projection assumes a continuation of current economic conditions and local market trends. Average rent prices are expected to follow a similar trajectory, potentially increasing to approximately $900 per month by 2029, reflecting ongoing demand for the limited rental properties in the area.
In summary, Harrisburg has experienced a significant shift towards homeownership, with a corresponding decrease in renters. This trend has been accompanied by substantial increases in both average home prices and rent prices. The interplay between federal interest rates, local economic conditions, and housing supply has shaped these trends, creating a dynamic and evolving housing market in this Missouri town.
