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Baden's Rising Home Values and Ownership: A Decade of Real Estate Dynamics
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
Baden, a neighborhood in St. Louis, Missouri, has experienced notable changes in its housing market over the past decade. This urban area has seen a general trend of increasing average home prices, while homeownership rates have fluctuated. The homeownership rate in Baden has shown variability, starting at 57% in 2013, decreasing to 50% by 2018, and then rising to 59% by 2022. This recent increase in homeownership coincided with a significant rise in average home prices, which grew from $30,541 in 2016 to $56,192 in 2022, representing an impressive 84% increase over six years.
The relationship between federal interest rates and homeownership rates in Baden shows an interesting pattern. As interest rates remained low from 2013 to 2015 (around 0.1%), homeownership rates gradually declined. However, when interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, homeownership rates in Baden actually increased. This suggests that local factors may have had a stronger influence on homeownership trends in this neighborhood than national interest rates.
Renter percentages in Baden have generally mirrored the inverse of homeownership rates. The percentage of renters increased from 43% in 2013 to a peak of 50% in 2018, before declining to 41% in 2022. Average rent prices in the neighborhood have shown some fluctuation. In 2013, the average rent was $737, which increased to $811 by 2017. However, there was a subsequent decrease, with the average rent dropping to $697 in 2022. This decrease in rent prices, coupled with the increase in homeownership, suggests a potential shift in housing preferences or affordability in the neighborhood.
Looking at the most recent data, the average home price in Baden reached $57,304 in 2023, showing continued growth. However, in 2024, there was a slight decrease to $55,615. This coincides with higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may have impacted housing affordability and demand.
Based on the observed trends, we can make some predictions for the next five years. Average home prices in Baden are likely to continue their overall upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $65,000 to $70,000 by 2029. Rent prices, which have shown more volatility, may stabilize or see moderate increases, potentially reaching an average of $750 to $800 per month in the same timeframe.
In summary, Baden has experienced a resurgence in homeownership in recent years, coupled with significant increases in average home prices. The neighborhood has shown resilience in its housing market, with homeownership rates increasing despite rising interest rates. The coming years may see continued growth in home values, while rent prices could stabilize or see modest increases.
