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Zip Code 65680: Soaring Homeownership and Rising Home Values in Kissee Mills, 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 65680, encompassing Kissee Mills in Missouri, presents an intriguing case study of real estate dynamics in a rural setting. This area has experienced significant fluctuations in homeownership rates and property values over the past decade, with a notable trend towards increased owner-occupancy and rising average home prices.
The ownership percentage in this zip code has shown a remarkable upward trend, rising from 71% in 2013 to 95% in 2022. This substantial increase in homeownership coincides with a significant appreciation in average home prices. In 2013, the average home price was $82,264, which has more than doubled to $196,628 by 2022. This parallel growth suggests a strong correlation between increasing homeownership rates and rising property values in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 65680. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership in the area increased from 71% to 94%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the area remained high, suggesting other factors were also at play in maintaining the strong ownership trend.
The rental market in zip code 65680 has experienced a contrasting trend. As homeownership rates increased, the percentage of renters decreased dramatically from 28% in 2013 to just 5% in 2022. Despite this decline in renters, average rent prices have shown considerable volatility. The average rent price rose from $625 in 2013 to a peak of $1,031 in 2019, before slightly decreasing to $1,025 in 2022. This trend suggests that while fewer people are renting, those who do are facing higher costs, possibly due to limited rental inventory in an area dominated by homeowners.
Looking at the most recent data, the average home price in zip code 65680 continued to rise, reaching $208,390 in 2023 and $209,261 in 2024. This represents a slowing of price growth compared to previous years, possibly influenced by the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be tempering home price appreciation and could potentially impact homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 65680 will continue to appreciate, albeit at a more modest pace. The rapid growth seen in recent years is likely to moderate due to higher interest rates and potential market saturation. Average rent prices are expected to remain stable or show slight increases, reflecting the limited rental market in the area.
In summary, zip code 65680 has witnessed a remarkable shift towards homeownership, accompanied by substantial increases in property values. The interplay between federal interest rates, homeownership rates, and property prices has been evident, with low interest rates initially fueling the homeownership boom. As the area approaches near-total owner-occupancy, future real estate dynamics will likely be influenced by broader economic factors and the ability of the market to sustain such high levels of homeownership.
