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Albany, Missouri: Home Values and Ownership Trends in a Resilient Small-City Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Albany, a small city in Missouri, has experienced significant fluctuations in its housing market over the past decade. The city has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local demographic changes.
The homeownership rate in Albany has shown a general decline from 2013 to 2019, followed by a slight recovery. In 2013, 73% of housing units were owner-occupied. This percentage peaked at 77% in 2014 and 2015 before gradually decreasing to 68% in 2019. However, there was a rebound to 74% in 2021, followed by a slight drop to 70% in 2022. Concurrently, average home prices have shown a steady increase. From 2016 to 2022, average home prices rose from $69,771 to $99,944, representing a substantial 43% increase over six years.
The relationship between federal interest rates and homeownership rates in Albany shows some correlation. As interest rates remained low from 2013 to 2015 (ranging from 0.11% to 0.13%), homeownership rates were at their highest (73-77%). When interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined to their lowest point of 68% in 2019. The subsequent drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) corresponded with an increase in homeownership rates to 71% and 74%.
Renter percentages in Albany have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 27% in 2013 to a peak of 32% in 2019, before declining to 26% in 2021 and rising slightly to 30% in 2022. Average rent prices have shown a consistent upward trend, rising from $403 in 2013 to $578 in 2019, an increase of 43% over six years. However, there was a slight dip to $474 in 2021 before rising again to $530 in 2022. This trend in rent prices occurred despite fluctuations in the city's population, which peaked at 2,304 in 2016 and decreased to 1,960 by 2022.
In 2023 and 2024, Albany's housing market showed signs of stabilization. The average home price in 2023 was $94,995, a slight decrease from the 2022 peak of $99,944. In 2024, the average home price further adjusted to $94,531. This cooling in the housing market coincides with significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on recent trends and economic factors, it's projected that average home prices in Albany may experience modest growth over the next five years, potentially reaching around $105,000 by 2029. Average rent prices are also expected to continue their upward trajectory, potentially increasing to approximately $600 per month by 2029.
In summary, Albany's housing market has demonstrated resilience and growth over the past decade, with notable increases in both average home prices and rent prices. The city has experienced shifts in homeownership rates, likely influenced by factors such as federal interest rates and local economic conditions. The recent stabilization in home prices, coupled with higher interest rates, suggests a more balanced market moving forward. These trends indicate a dynamic housing landscape in Albany, reflecting both local factors and broader economic influences.
