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Zip Code 65559: Average Home Values Soar as Ownership Declines in St. James, 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 65559, located in St. James, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, with a population of 9,563 in 2022, has seen fluctuations in both ownership percentages and average home values, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 65559 has shown a gradual decline from 2013 to 2022. In 2013, 72% of housing units were owner-occupied, but this percentage decreased to 68% by 2022. Concurrently, average home prices in the area have experienced significant growth. From 2016 to 2022, average home prices increased from $125,431 to $188,466, representing a substantial 50.3% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code reveals an interesting pattern. As interest rates remained low between 2013 and 2015 (0.11% to 0.13%), homeownership rates remained stable at around 72%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined to 68%. This trend aligns with the general expectation that higher interest rates can make homeownership less affordable, potentially leading to a decrease in ownership rates.
Renter percentages in zip code 65559 have shown a corresponding increase as homeownership rates declined. The percentage of renter-occupied housing units rose from 28% in 2013 to 32% in 2022. Interestingly, average rent prices have exhibited volatility during this period. The average rent peaked at $755 in 2016 but decreased to $659 by 2022, a 12.7% reduction. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex interplay of factors affecting the local rental market.
In 2023 and 2024, the housing market in zip code 65559 continued to evolve. The average home price reached $194,952 in 2023 and further increased to $201,152 in 2024, marking a 3.2% year-over-year growth. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 65559 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize and potentially increase moderately, influenced by the growing renter population and overall housing demand in the area.
In summary, zip code 65559 has experienced a gradual shift towards a higher percentage of renters, coupled with substantial growth in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the dynamic nature of the local real estate market. As the area continues to evolve, these trends will likely shape the future of housing in this Missouri community.
