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Billings, Missouri: Rising Home Values and Ownership Rates Defy Interest Rate Trends
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
Billings, Missouri, is a small city with a population that has fluctuated over the past decade, peaking at 2,750 residents in 2018 before declining to 2,344 in 2022. This city has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Billings has shown a steady increase over recent years, rising from 77% in 2016 to 85% in 2022. This upward trend in homeownership coincides with a significant increase in average home prices. In 2016, the average home price in Billings was $152,294, which rose dramatically to $283,330 by 2022, representing an impressive 86% increase over six years.
The relationship between federal interest rates and homeownership rates in Billings presents an interesting case. Despite the federal interest rate increasing from 0.4% in 2016 to 1.68% in 2022, the homeownership rate in Billings continued to climb. This suggests that local factors, such as job market stability or community development initiatives, may have had a stronger influence on homeownership than national interest rates during this period.
As homeownership increased, the percentage of renters in Billings decreased from 23% in 2016 to 15% in 2022. Interestingly, average rent prices in Billings have shown volatility during this period. The average rent peaked at $966 in 2019 before declining to $785 in 2022. This decrease in average rent, coupled with the declining renter population, could indicate a shift in the local rental market dynamics, possibly influenced by the increasing preference for homeownership.
Looking at the most recent data, the average home price in Billings continued its upward trajectory, reaching $298,370 in 2023 and further increasing to $307,942 in 2024. This represents a 8.7% increase from 2022 to 2024, despite the federal interest rate rising significantly to 5.33% in 2024. This suggests a robust local housing market that has maintained growth even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Billings will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. Assuming a conservative annual growth rate of 3-4%, average home prices could reach approximately $360,000 to $375,000 by 2029. For rent prices, given the recent volatility and downward trend, we might expect a period of stabilization followed by modest growth. Average rent could potentially reach $850 to $900 per month by 2029, assuming a gradual 1-2% annual increase from the 2022 levels.
In summary, Billings has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices. This trend has persisted even in the face of rising interest rates, indicating strong local demand for housing. The rental market has seen a decline in both the proportion of renters and average rent prices, suggesting a changing landscape in the city's housing dynamics. As Billings moves forward, it will be crucial to monitor how these trends evolve, particularly in light of the recent sharp increases in interest rates and their potential impact on the housing market.
