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Zip Code 65785: Rising Home Values and Ownership Trends in Stockton, 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 65785, located in Stockton, Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 214.6 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local developments.
The homeownership rate in zip code 65785 has shown resilience, with a significant increase from 69% in 2016 to 77% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2016, the average home price was $119,761, which steadily increased to $206,360 by 2022, representing a remarkable 72% growth over six years. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased local investment.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2016 to 2022 saw relatively low interest rates, ranging from 0.4% to 1.68%. These low rates likely contributed to the increase in homeownership by making mortgages more affordable. The sharp rise in homeownership from 71% in 2020 to 77% in 2022 coincided with historically low interest rates of 0.38% in 2020 and 0.08% in 2021, which may have spurred home buying activity.
Renter percentages in zip code 65785 have inversely mirrored the homeownership trends, decreasing from 30% in 2016 to 23% in 2022. Interestingly, average rent prices have shown moderate fluctuations during this period. The average rent was $698 in 2016, peaked at $731 in 2020, and then slightly decreased to $738 in 2022. This relative stability in rent prices, combined with rising home values, may have incentivized more residents to transition from renting to owning, contributing to the observed shift in housing tenure.
In 2023 and 2024, the housing market in zip code 65785 continued its upward trajectory. The average home price reached $217,318 in 2023 and further increased to $224,988 in 2024, representing a 9% growth over two years. This surge occurred despite a significant rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024. The persistence of home price appreciation in the face of higher interest rates suggests strong underlying demand in the local housing market.
Looking ahead, predictive models forecast continued growth in both home prices and rent in zip code 65785 over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $260,000 by 2029. Rent prices are expected to follow a similar trajectory, with an estimated annual growth of 2-3%, potentially bringing the average rent to approximately $850 by 2029.
In summary, zip code 65785 has demonstrated a robust housing market characterized by increasing homeownership rates and steadily rising home values. The area has shown resilience to economic fluctuations, with home prices continuing to appreciate even as interest rates have risen. The trend towards homeownership, coupled with sustained growth in property values, suggests a positive outlook for the local real estate market in the coming years.
