Loading Content...
Zip Code 65609: Bakersfield's Rising Home Values and High Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bakersfield, located in zip code 65609 in Missouri, presents an intriguing case study of homeownership and rental trends. This rural community has experienced fluctuations in its ownership percentage and housing prices over the past decade, reflecting broader economic shifts and local dynamics.
The homeownership rate in Bakersfield has shown resilience, with a general upward trend from 2013 to 2022. In 2013, the ownership rate stood at 80%, and by 2022, it had increased to 82%. This trend coincided with a significant rise in average home prices. In 2017, the average home price was $118,115, and by 2022, it had surged to $213,433, representing an impressive 80.7% increase over five years. This substantial appreciation in home values likely contributed to the steady homeownership rates, as existing homeowners benefited from increased equity.
Federal interest rates have played a crucial role in shaping homeownership trends in Bakersfield. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable lending environment likely supported the high homeownership rates observed during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained stable, suggesting a strong local preference for homeownership despite potentially higher borrowing costs.
Renter percentages in Bakersfield have fluctuated inversely to homeownership rates, with a general downward trend from 2016 to 2022. In 2016, renters comprised 27% of the population, but this figure decreased to 18% by 2022. Interestingly, average rent prices have shown an overall upward trajectory during this period. In 2013, the average rent was $514, rising to $643 in 2022, a 25.1% increase. This trend suggests that while fewer residents are renting, those who do are paying higher prices, possibly due to limited rental inventory or improved quality of available rentals.
The year 2023 saw a continued increase in average home prices in Bakersfield, reaching $215,308. This represents a modest 0.9% increase from 2022, indicating a potential slowdown in the rapid price appreciation seen in previous years. In 2024, the average home price further increased to $220,215, a 2.3% rise from 2023. Notably, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and price growth in the area.
Looking ahead, predictive models suggest a continued but moderate increase in both average home prices and rent prices over the next five years. Home prices are expected to grow at an annual rate of 2-3%, potentially reaching around $250,000 by 2029. Rent prices are projected to increase at a similar pace, potentially surpassing $750 per month by 2029. However, these projections may be influenced by factors such as local economic conditions, population changes, and broader market trends.
In summary, Bakersfield has demonstrated a strong preference for homeownership, with increasing home values and stable ownership rates despite rising interest rates. The rental market, while smaller, has seen price appreciation even as the proportion of renters has decreased. The recent slowdown in home price growth and higher interest rates may signal a shift towards a more balanced housing market in the coming years.
