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Zip Code 65809: Home Values and Ownership Trends 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 65809, located in Springfield, Missouri, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a gradual shift in the balance between owners and renters, coupled with notable fluctuations in housing costs.
The homeownership rate in zip code 65809 has seen a slight decline from 2013 to 2022. In 2013, the area boasted a high 90% homeownership rate, which gradually decreased to 84% by 2022. This 6% drop coincided with a substantial increase in average home prices. In 2013, the average home price was $239,151, which rose steadily to reach $402,272 by 2022, marking a 68% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. As interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 88-90%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline to 84%. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in zip code 65809 has increased from 9% in 2013 to 16% in 2022. This rise in the renter population coincided with fluctuations in average rent prices. Average rent peaked at $1,734 in 2013 and then experienced a general downward trend, reaching $1,169 in 2022. This 32.6% decrease in average rent prices occurred despite the growing renter population, which increased from 901 to 1,562 individuals during this period.
In 2023 and 2024, the housing market in zip code 65809 continued to evolve. The average home price rose to $416,891 in 2023 and further increased to $424,105 in 2024, representing a 5.4% growth over these two years. This upward trend occurred despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which are significantly higher rates compared to the previous decade.
Looking ahead, predictive models suggest that average home prices in zip code 65809 may continue to rise over the next five years, potentially reaching around $490,000 by 2029. This projection is based on the historical growth rate and current market conditions. For average rent prices, the model indicates a potential stabilization or slight increase, possibly reaching approximately $1,300 by 2029, assuming the current trends in population growth and housing demand continue.
In summary, zip code 65809 has experienced a gradual shift from a predominantly owner-occupied area to one with a growing renter population. Despite this change, average home prices have shown significant appreciation, while average rent prices have generally decreased. The interplay between federal interest rates, homeownership rates, and housing costs highlights the complex dynamics of the local real estate market. As the area continues to evolve, it will be crucial to monitor these trends and their impact on the community's housing landscape.
