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Zip Code 65349: Rising Home Values and Shifting Ownership in Slater, 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 65349, located in Slater, Missouri, presents an intriguing case study of homeownership and rental trends over the past decade. This area has experienced significant fluctuations in both homeownership rates and housing prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 65349 has shown a notable decline from 2013 to 2022. In 2013, 78% of residents were homeowners, but by 2022, this figure had dropped to 65%. This decline coincided with a general upward trend in average home prices. In 2016, the average home price was $92,737, which increased to $108,917 by 2022, representing a 17.4% increase over six years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 65349. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 78% to 74%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates experienced a steeper decline, dropping to 65% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 65349 has shown interesting trends as well. As homeownership rates declined, the percentage of renters increased from 22% in 2013 to 35% in 2022. This shift was accompanied by a rise in average rent prices, from $473 in 2013 to $578 in 2022, representing a 22.2% increase. The population of the zip code remained relatively stable during this period, fluctuating between 2,782 and 2,968 residents, suggesting that the increase in renters was primarily due to shifts from homeownership to renting rather than significant population growth.
In 2023 and 2024, zip code 65349 experienced some notable changes in the housing market. The average home price rose to $111,657 in 2023, a 2.5% increase from 2022. However, in 2024, there was a significant drop to $99,569, representing a 10.8% decrease from the previous year. This decline coincided with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These high interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, predictive models suggest that average home prices in zip code 65349 may continue to face downward pressure in the short term due to high interest rates. However, as the market adjusts, prices are expected to stabilize and potentially see modest growth over the next five years. Rent prices, on the other hand, are projected to continue their upward trend, albeit at a slower pace, driven by the increasing demand for rental properties as homeownership becomes less accessible.
In summary, zip code 65349 has experienced a significant shift from homeownership to renting over the past decade, influenced by rising home prices and fluctuating interest rates. The recent sharp increase in interest rates has led to a notable decline in average home prices, while rent prices have continued to rise. These trends highlight the complex interplay between economic factors and housing market dynamics in this Missouri community.
