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Anderson, Missouri: Rising Home Values Amid Shifting Ownership Trends
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
Anderson, located in Missouri, is a small urban area that has experienced fluctuating population and housing trends over the past decade. The city has seen a gradual shift from predominantly owner-occupied housing to a more balanced mix of owners and renters, accompanied by notable changes in average home prices and rent costs.
From 2013 to 2022, Anderson witnessed a significant decline in homeownership rates, dropping from 72% to 59%. During this period, average home prices showed a substantial increase. The average home price rose from $116,611 in 2021 to $133,358 in 2022, representing a 14.4% increase in just one year.
The trend in homeownership rates appears to have an inverse relationship with federal interest rates. For instance, when interest rates were at historic lows of 0.08% in 2021, homeownership in Anderson was at 61%. As interest rates climbed to 1.68% in 2022, homeownership dropped to 59%. This pattern suggests that despite low interest rates potentially making mortgages more affordable, other factors were influencing homeownership decisions in Anderson.
As homeownership decreased, the percentage of renters in Anderson increased from 28% in 2013 to 41% in 2022. This shift coincided with a rise in average rent prices. The average rent increased from $581 in 2013 to $791 in 2022, a 36.1% jump over nine years. The most significant year-over-year increase occurred between 2018 and 2019, when average rent rose from $597 to $739, a 23.8% increase.
In 2023, the average home price in Anderson slightly decreased to $132,756, a 0.5% drop from the previous year. However, in 2024, the average home price rebounded to $138,018, showing a 4% increase from 2023. Concurrently, federal interest rates rose to 5.02% in 2023 and further to 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis.
Looking ahead, based on recent trends and current economic conditions, we can project that average home prices in Anderson may continue to rise moderately over the next five years, potentially reaching around $150,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $900 per month within the same timeframe, assuming the current trajectory continues.
In summary, Anderson has experienced a notable shift towards renting, with homeownership rates declining despite periods of low interest rates. Both average home prices and rent costs have shown an upward trend, with home prices demonstrating more volatility. The recent uptick in interest rates, combined with rising home prices, suggests that affordability may become an increasingly important factor in the local housing market dynamics over the coming years.
