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Zip Code 65401: Rolla's Housing Market Resilience Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 65401, located in Rolla, Missouri, presents an interesting case study in homeownership and rental trends. This area has maintained a relatively stable homeownership rate while experiencing fluctuations in average home prices and rent over the past decade.
The homeownership rate in zip code 65401 has remained remarkably consistent, hovering around 56% from 2013 to 2022. Despite this stability, average home prices have shown a significant upward trend. In 2016, the average home price was $130,684, which steadily increased to $198,046 by 2022, representing a substantial 51.5% growth over six years. This rise in home prices did not appear to significantly impact the homeownership rate, suggesting other factors may be influencing local residents' ability or desire to own homes.
Federal interest rates have played a role in shaping homeownership trends. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), the homeownership rate held steady at 56%. As interest rates began to rise, reaching 1.83% in 2018 and 2.16% in 2019, the homeownership rate remained unchanged. This stability in homeownership despite rising interest rates and home prices indicates a resilient local housing market.
The renter percentage in zip code 65401 has also remained stable, fluctuating between 43% and 45% from 2013 to 2022. Average rent prices have shown some variability over this period. In 2013, the average rent was $761, which decreased to $723 in 2015 before rising again to $774 in 2016. By 2022, the average rent had decreased to $708. This fluctuation in rent prices, coupled with a steady renter percentage, suggests that local rental market dynamics are influenced by factors beyond just price, such as housing availability and local economic conditions.
In 2023 and 2024, the housing market in zip code 65401 continued its upward trajectory. The average home price reached $202,212 in 2023 and further increased to $207,689 in 2024, marking a 4.9% rise over two years. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest a continued upward trend in average home prices for zip code 65401 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $230,000 to $240,000 by 2029. Rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching an average of $750 to $800 per month in the same timeframe.
In summary, zip code 65401 demonstrates a housing market characterized by stable homeownership rates despite rising home prices. The resilience of homeownership in the face of increasing prices and fluctuating interest rates is a key feature of this market. The rental market, while showing some price variability, has maintained a consistent proportion of renters. As home prices continue to rise, it will be crucial to monitor how this impacts affordability and homeownership rates in the coming years.
