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Arcadia, Missouri: Rising Home Values and Ownership Rates in a Small City with Resilient Housing Market
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
Arcadia, a small city in Missouri, has experienced notable shifts in its housing market over the past decade. This quaint community, nestled in the eastern part of the state, has seen fluctuations in homeownership rates, average home prices, and average rent prices that reflect broader economic trends and local dynamics.
The homeownership rate in Arcadia has shown significant variability from 2013 to 2022. In 2013, the city had a homeownership rate of 75%, which peaked at 77% in 2014. However, this rate declined to 63% by 2016 and 2018, before rebounding to 76% in 2022. Concurrently, average home prices in Arcadia have shown a steady upward trend. From 2016 to 2022, average home prices increased from $111,103 to $184,613, representing a substantial 66% increase over six years.
The relationship between federal interest rates and homeownership rates in Arcadia appears to follow expected patterns. As interest rates remained low from 2013 to 2015, ranging from 0.09% to 0.13%, homeownership rates were relatively high, averaging around 74%. When interest rates began to rise in 2016, reaching 1.83% by 2018, homeownership rates dipped to their lowest point of 63%. However, the relationship became less clear in recent years, as homeownership rebounded to 76% in 2022 despite rising interest rates of 1.68%.
Renter percentages in Arcadia have mirrored the inverse of homeownership rates, ranging from a low of 23% in 2014 to a high of 38% in 2019. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $488, which decreased to $404 in 2015. However, from 2015 to 2022, average rent prices increased steadily, reaching $646 in 2022, representing a 60% increase over seven years. This trend occurred despite a population decrease from 2,046 in 2013 to 1,865 in 2022, suggesting that factors beyond population growth were influencing rent prices.
In 2023 and 2024, Arcadia's housing market continued to evolve. The average home price in 2023 was $184,357, showing a slight decrease from 2022. However, in 2024, the average home price increased to $185,555. This occurred against a backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in Arcadia may continue to rise moderately over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $700 per month within the same timeframe. These projections assume continued economic stability and gradual population growth in the area.
In summary, Arcadia's housing market has demonstrated resilience and growth despite population fluctuations. The city has maintained a relatively high homeownership rate, even in the face of rising home prices and interest rates. The rental market has also shown strength, with steadily increasing average rents. These trends suggest a complex interplay of local and national economic factors shaping Arcadia's housing landscape.
