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Zip Code 65803: Rising Home Values and Stable Ownership in Springfield, 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 65803, located in Springfield, Missouri, covers an area of 95.26 square miles and has experienced notable trends in homeownership rates and housing prices over the past decade. The area has maintained a relatively stable balance between owner-occupied and renter-occupied housing units, with average home prices showing significant growth, particularly in recent years.
The homeownership rate in zip code 65803 has remained relatively stable, hovering around 54-55% from 2013 to 2022. Despite this stability, average home prices have shown a substantial upward trend. In 2013, the average home price was $72,640, which steadily increased to $158,208 by 2022, representing a remarkable 117.8% increase over this period. This trend suggests that while the proportion of homeowners remained consistent, the value of properties in the area appreciated significantly.
Federal interest rates have played a role in shaping homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 54%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership to 55% in 2017 and 2018, before dipping back to 53% in 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a return to 54-55% homeownership rates, illustrating the complex relationship between interest rates and homeownership in this area.
Renter percentages in zip code 65803 have fluctuated slightly, ranging from 45% to 47% between 2013 and 2022. Average rent prices have shown a steady increase during this period. In 2013, the average rent was $679, which rose to $806 by 2022, representing an 18.7% increase. This growth in rent prices, while significant, has been less dramatic than the increase in home prices. The population in the zip code has also grown from 44,141 in 2013 to 44,682 in 2022, potentially contributing to the demand for rental properties and the upward pressure on rent prices.
In 2023 and 2024, the average home prices in zip code 65803 continued their upward trajectory. The average home price reached $169,061 in 2023 and further increased to $174,985 in 2024. This represents a 10.7% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current economic conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 65803. Average home prices are likely to continue their upward trajectory, albeit potentially at a slower rate due to higher interest rates. Projecting the current trend, average home prices could reach approximately $200,000 to $220,000 by 2029. Average rent prices are also expected to increase, potentially reaching $900 to $950 per month in the same period, assuming a continuation of the current growth rate.
In summary, zip code 65803 has demonstrated a relatively stable homeownership rate despite significant increases in average home prices. The area has experienced steady population growth and rising rent prices, indicating a robust housing market. The recent sharp increase in interest rates, coupled with continued home price appreciation, may present challenges for future homeownership rates and affordability in the area. However, the consistent growth in both home values and rent prices suggests a strong and desirable real estate market in this Springfield, Missouri zip code.
