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Bethany, Missouri: Rising Home Values and Shifting Ownership Trends in a Small City
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
Bethany, a small city in Missouri with 3,633 residents as of 2022, has experienced significant changes in its housing market over the past decade. The city has seen a slight decline in homeownership rates alongside a substantial increase in average home prices, reflecting both broader economic trends and local market dynamics.
From 2013 to 2022, Bethany's homeownership rate decreased from 64% to 61%. During this same period, average home prices showed a remarkable upward trend. In 2013, the average home price in Bethany was $74,793. By 2022, this figure had risen dramatically to $114,764, representing a 53.4% increase over nine years.
The relationship between federal interest rates and homeownership rates in Bethany reveals interesting patterns. In 2013, when interest rates were at a low 0.11%, the homeownership rate was 64%. As interest rates began to rise, reaching 1.83% in 2018, homeownership showed a slight increase to 65%. However, by 2022, with interest rates at 1.68%, homeownership had decreased to 61%. This suggests that while lower interest rates generally encourage homeownership, other local factors may have influenced Bethany's housing market.
Renter percentages in Bethany have shown a gradual increase, moving from 36% in 2013 to 39% in 2022. Average rent prices have fluctuated over this period. In 2013, the average rent was $514, peaking at $610 in 2015 before declining to $475 in 2022. This trend doesn't directly correlate with the increasing renter percentage, indicating that other factors such as local economic conditions or housing availability may be influencing rental market dynamics.
In 2023, Bethany's average home price continued its upward trajectory, reaching $119,147. This trend persisted into 2024, with average home prices climbing to $125,221. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market activity in Bethany.
Looking ahead, based on the observed trends, we can forecast that average home prices in Bethany are likely to continue their upward trajectory over the next five years, potentially reaching around $150,000 by 2029. However, this growth rate may slow if high interest rates persist, potentially affecting affordability and demand. Average rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching around $525 by 2029, assuming economic conditions remain stable and housing demand continues to grow.
In summary, Bethany's housing market has shown resilience and growth over the past decade, with rising home values and a gradual shift towards a higher percentage of renters. The interplay between interest rates, homeownership, and housing prices will likely continue to shape the city's real estate landscape in the coming years. The recent surge in home prices, coupled with rising interest rates, may present both opportunities and challenges for Bethany's housing market moving forward.
