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Bismarck, 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
Bismarck, a city in Missouri, has experienced notable shifts in its housing market over the past decade. This small community has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local dynamics. The city has demonstrated a general trend towards increased homeownership, with average home prices rising significantly, while rental markets have shown more variability.
The homeownership rate in Bismarck has shown a steady increase from 64% in 2013 to 72% in 2022, with a peak of 76% in 2021. This upward trend in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $53,468, which more than doubled to $131,201 by 2022. This significant appreciation in home values suggests a strong demand for housing in the area, potentially driven by factors such as local economic growth or improved community amenities.
The relationship between federal interest rates and homeownership rates in Bismarck appears to follow the expected pattern, with lower interest rates generally corresponding to higher homeownership rates. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates increased from 64% to 69%. The continued low interest rates through 2021 (0.08%) coincided with the peak homeownership rate of 76%.
Renter percentages in Bismarck have inversely mirrored the homeownership trend, decreasing from 36% in 2013 to 28% in 2022. Interestingly, average rent prices have shown some volatility. The average rent increased from $536 in 2013 to a peak of $650 in 2018, before dropping to $511 in 2019 and then rising again to $632 in 2022. This fluctuation in rent prices, despite the decreasing percentage of renters, could be attributed to changes in housing quality, local economic factors, or shifts in the rental property market.
In 2023 and 2024, Bismarck's housing market continued its upward trajectory. The average home price reached $136,179 in 2023 and further increased to $138,723 in 2024. This represents a 5.7% increase from 2022 to 2024. Interestingly, this growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or other favorable market conditions in Bismarck.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Bismarck will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate suggests average home prices could reach around $150,000 to $160,000 by 2029. Average rent prices are also expected to increase, possibly reaching $700 to $750 per month in the same timeframe, assuming the current economic conditions and housing demand persist.
In summary, Bismarck has experienced a notable increase in homeownership rates and average home prices over the past decade. The rental market has shown more variability, with decreasing renter percentages but fluctuating rent prices. The city's housing market has demonstrated resilience, with continued price growth even in the face of rising interest rates. These trends suggest a robust local housing market with potential for further growth in both home values and rental prices in the coming years.
