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Zip Code 65486: Rising Home Values and Ownership Rates 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 65486, located in Iberia, Missouri, presents an intriguing case study of homeownership and housing market trends. This rural area has experienced significant shifts in its population and housing dynamics over the past decade, with a strong tendency towards homeownership and fluctuating average home and rent prices.
The homeownership rate in zip code 65486 has shown a remarkable upward trend, increasing from 74% in 2013 to 88% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2016, the average home price was $116,261, and by 2022, it had risen to $187,515, representing a 61.3% increase over six years. This trend suggests a growing preference for homeownership in the area, despite rising property values.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership rates steadily increased. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's important to note that even as interest rates began to rise significantly in 2022 to 1.68%, the homeownership rate in the zip code continued to climb, reaching its peak of 88%.
Conversely, the percentage of renters in zip code 65486 has decreased substantially, from 26% in 2013 to 12% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. The average rent increased from $556 in 2013 to $590 in 2018, then decreased to $548 in 2022. This fluctuation in rent prices, coupled with the declining renter population, suggests a complex rental market dynamic, possibly influenced by the area's overall population decline from 3,316 in 2013 to 2,631 in 2022.
In 2023 and 2024, the housing market in zip code 65486 continued to evolve. The average home price rose to $195,088 in 2023 and further increased to $198,383 in 2024, representing a steady upward trend. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from previous years.
Looking ahead, predictive models suggest that the average home prices in zip code 65486 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. The average rent prices, which have shown some stability in recent years, may see modest increases as the rental market adjusts to the changing population and homeownership dynamics.
In summary, zip code 65486 has demonstrated a strong trend towards homeownership, with a significant increase in both the percentage of homeowners and average home prices. This trend has persisted even in the face of rising interest rates and a declining overall population. The rental market, while shrinking, has shown resilience in terms of average rent prices. These trends paint a picture of a changing rural community with a growing preference for homeownership and a housing market that continues to appreciate despite broader economic challenges.
