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Atlanta, Missouri: Home Values and Ownership Trends in a Small but Vibrant Community
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
Atlanta, Missouri, is a small but vibrant community that has experienced significant demographic shifts over the past decade. The city has seen fluctuations in its homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Atlanta has shown a gradual decline from 2013 to 2022. In 2013, the city had an 86% homeownership rate, which decreased to 79% by 2022. This trend suggests a shift towards a more balanced housing market with an increasing proportion of renters. Despite this decline, Atlanta maintains a relatively high homeownership rate compared to national averages.
Federal interest rates have played a significant role in shaping homeownership trends in Atlanta. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates in Atlanta remained relatively stable, fluctuating between 81% and 86%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a corresponding decrease in homeownership rates, dropping to 79% by 2022. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Atlanta has shown an inverse relationship to homeownership trends. As the percentage of homeowners decreased, the proportion of renters increased from 14% in 2013 to 21% in 2022. This shift coincided with a steady rise in average rent prices. In 2013, the average rent was $497, which increased to $575 by 2022, representing a 15.7% increase over nine years. This upward trend in rent prices may be attributed to increased demand for rental properties as homeownership rates declined.
In 2023 and 2024, Atlanta experienced a significant jump in average home prices. The average home price in 2023 was $187,995, which increased to $188,782 in 2024, representing a 0.42% increase in just one year. This rise in home prices occurred alongside a substantial increase in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and could potentially lead to a further increase in the rental market share.
Looking ahead, predictive models suggest that average home prices in Atlanta may continue to rise moderately over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are also expected to follow an upward trajectory, potentially increasing to approximately $625 by 2029. These projections are based on current trends and assume relatively stable economic conditions.
In summary, Atlanta has experienced a gradual shift from a predominantly homeowner market to a more balanced housing landscape. The decline in homeownership rates, coupled with rising average rent prices, reflects changing economic conditions and housing preferences. The recent surge in average home prices and federal interest rates in 2023 and 2024 may further impact these trends, potentially leading to a more competitive rental market and challenges for prospective homeowners in the coming years.
