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Bella Villa, Missouri: Rising Home Values and Shifting Ownership Patterns in a Small City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bella Villa, a small city in Missouri, has experienced fluctuating trends in homeownership and housing prices over the past decade. This compact community, spanning just 0.13 square miles, has seen significant changes in its real estate landscape, reflecting broader economic shifts and local dynamics.
The homeownership rate in Bella Villa has shown a gradual decline from 2013 to 2022. In 2013, the city boasted a high 93% homeownership rate, which decreased to 80% by 2022. This 13 percentage point drop indicates a shift in the housing market dynamics. Concurrently, average home prices have demonstrated a steady upward trend. In 2013, the average home price was $102,956, which rose to $171,336 by 2022, representing a substantial 66.4% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in Bella Villa. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained relatively stable, hovering around 90-93%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates started to decline more rapidly, dropping from 86% in 2017 to 80% in 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in Bella Villa has shown an inverse relationship to homeownership trends. As the percentage of renters increased from 7% in 2013 to 20% in 2022, average rent prices also saw an upward trajectory. In 2013, the average rent was $801, which increased to $825 by 2022, a modest 3% rise. However, it's worth noting that rent prices peaked at $950 in 2019 before slightly decreasing. This trend may be attributed to the growing renter population, which increased from 46 individuals in 2013 to 135 in 2022, based on the city's population figures.
In 2023 and 2024, Bella Villa continued to see growth in average home prices. The average home price reached $180,716 in 2023 and further increased to $189,691 in 2024, representing a 5.5% and 5.0% year-over-year growth, respectively. These increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both home prices and rent in Bella Villa over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $230,000 by 2029. Rent prices, while more volatile, are likely to see moderate increases, possibly reaching an average of $900-$950 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market factors.
In summary, Bella Villa has experienced a notable shift from a predominantly homeowner community to one with a growing renter population. This transition has occurred alongside rising home values and fluctuating rent prices. The interplay between federal interest rates, local demographics, and broader economic trends continues to shape the housing market in this small Missouri city, presenting both challenges and opportunities for residents and potential investors alike.
