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Zip Code 65281: Average Home Values and Ownership Trends in Rural 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
Zip code 65281, located in Salisbury, Missouri, presents an intriguing case study of homeownership and rental trends in a small urban area. Over the past decade, this region has experienced fluctuations in both ownership percentages and housing prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 65281 has shown a notable increase from 79% in 2019 to 85% in 2022, indicating a strong preference for homeownership among residents. This trend coincides with changes in average home prices, which rose significantly from $147,411 in 2019 to $201,034 in 2022, representing a 36.4% increase over three years. The parallel growth in homeownership rates and home prices suggests a robust local housing market with increasing demand for owner-occupied properties.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 65281. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% to 0.08%. This favorable financing environment likely contributed to the surge in homeownership rates from 79% to 83% during the same period. As interest rates began to rise in 2022 to 1.68%, we observe a continued increase in homeownership to 85%, possibly due to buyers rushing to secure mortgages before rates climbed further.
Conversely, the renter population in zip code 65281 has decreased from 21% in 2019 to 15% in 2022. This decline in renters coincides with fluctuations in average rent prices. The average rent increased from $643 in 2019 to $631 in 2020, then dropped significantly to $539 in 2021, before rebounding to $629 in 2022. The sharp decrease in rent prices in 2021 may have been a response to the declining renter population, as property owners attempted to attract tenants in a shrinking rental market.
In 2023 and 2024, we observe a notable shift in the housing market for zip code 65281. Average home prices decreased from the 2022 peak of $201,034 to $179,989 in 2023 and further to $157,465 in 2024. This 21.7% decline over two years coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely cooled the housing market, making mortgages more expensive and potentially reducing buyer demand.
Looking ahead, we can anticipate continued volatility in the housing market for zip code 65281. Based on recent trends, we predict that average home prices may stabilize or slightly decrease over the next five years, potentially settling around $150,000 to $160,000 by 2029. Average rent prices are expected to maintain their current levels or see modest increases, potentially reaching $650 to $700 by 2029, as the rental market adjusts to changes in homeownership rates and overall housing affordability.
In summary, zip code 65281 has experienced a significant increase in homeownership rates and home prices from 2019 to 2022, followed by a market correction in 2023 and 2024. The interplay between federal interest rates, homeownership trends, and rental market dynamics highlights the complex factors influencing housing in this area. As the market continues to evolve, residents and potential investors should closely monitor these trends to make informed decisions about housing in this Missouri community.
