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Arcola, Missouri: A Decade of Rising Home Values and Ownership Rates
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
Arcola, Missouri, is a small community located in Dade County. With a population of 874 in 2022, this charming village has experienced fluctuations in its homeownership rates and housing market over the past decade. The overall trend shows an increase in homeownership percentage, while average home prices and average rent have generally risen.
The homeownership percentage in Arcola has shown an upward trend since 2013. In 2013, the homeownership rate was 72%, which increased to 88% by 2015. This rate remained relatively stable in subsequent years, with slight fluctuations. By 2022, the homeownership rate stood at 83%. This trend coincides with changes in average home prices, which have seen significant growth. While specific data for earlier years is not available, we can observe that the average home price in 2021 was $160,542, rising to $188,523 in 2022, representing a substantial increase of 17.4% in just one year.
The relationship between federal interest rates and homeownership rates in Arcola appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), the village saw its highest homeownership rates, peaking at 88% in 2015 and 2019. As interest rates began to rise more significantly from 2017 onwards, there was a slight decrease in homeownership rates, though they remained relatively high.
Renter percentages in Arcola have generally decreased as homeownership rates increased. In 2013, the renter-occupied percentage was 28%, which dropped to 12% by 2015. The renter percentage has since fluctuated, reaching 17% in 2022. Despite the decreasing renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $524, which increased to $951 by 2022, representing an 81.5% increase over nine years. This trend suggests that even with fewer renters, demand for rental properties remains strong, possibly due to limited rental inventory in the village.
In 2023 and 2024, Arcola's housing market continued to evolve. The average home price in 2023 was $186,374, showing a slight decrease from 2022. However, in 2024, the average home price rebounded to $190,915, indicating a recovery in the market. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the village.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Arcola are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by the limited rental inventory and the overall appreciation of property values in the area. However, the rate of increase may moderate as the market adjusts to economic conditions and potential changes in housing demand.
In summary, Arcola has experienced a notable increase in homeownership rates over the past decade, accompanied by rising average home prices and average rent. The interplay between federal interest rates, homeownership trends, and housing costs has shaped the village's real estate landscape. As the community continues to evolve, these trends will likely influence future housing decisions and market dynamics in Arcola.
