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Blue Springs, Missouri: Rising Home Values and Stable Ownership in a Growing 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
Blue Springs, Missouri, a city in Jackson County, is known for its excellent school system and high quality of life. As of 2022, the city had a population of 62,738 residents. Over the past decade, Blue Springs has experienced steady growth in both its population and housing market, with notable trends in homeownership rates, average home prices, and average rent prices.
Homeownership in Blue Springs has remained relatively stable, with a slight increase from 71% in 2015 to 73% in 2019, before returning to 71% in 2022. This stability coincides with a significant increase in average home prices. In 2013, the average home price in Blue Springs was $137,955. By 2022, this figure had more than doubled to $277,383, representing a substantial 101% increase over nine years. This trend suggests that despite rising home prices, Blue Springs has maintained its appeal as a city for homeowners.
The relationship between federal interest rates and homeownership rates in Blue Springs shows some correlation. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates in Blue Springs stayed consistently high at around 71-72%. The slight increase in homeownership to 73% in 2017-2019 coincided with a gradual rise in interest rates to 2.16% by 2019. However, even as interest rates dropped significantly in 2020-2021, homeownership rates remained stable, indicating that other factors beyond interest rates influence homeownership decisions in Blue Springs.
Renter percentages in Blue Springs have shown minor fluctuations, ranging from 26% to 29% between 2013 and 2022. Average rent prices have seen a moderate increase during this period. In 2013, the average rent was $1,111, which rose to $1,190 by 2022, representing a 7.1% increase over nine years. This relatively modest increase in rent prices, compared to the substantial rise in home prices, may have contributed to maintaining a stable renter population in the city.
Looking at the most recent data, average home prices in Blue Springs continued to rise in 2023 and 2024, reaching $286,736 and $294,022 respectively. This represents a 3.4% increase from 2022 to 2023 and a further 2.5% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Blue Springs will continue to rise, albeit at a potentially slower rate than seen in the past decade. By 2029, average home prices could reach approximately $340,000 to $360,000, assuming a more moderate annual growth rate of 3-4%. Average rent prices are expected to follow a similar upward trend, potentially reaching $1,300 to $1,350 by 2029, based on historical patterns and accounting for inflation.
In summary, Blue Springs has demonstrated resilience in its housing market, maintaining stable homeownership rates despite significant increases in average home prices. The city's ability to balance homeownership and rental options, coupled with its steady population growth, suggests a healthy and diverse housing market. As Blue Springs continues to evolve, the interplay between housing prices, rent rates, and federal interest rates will likely shape the city's residential landscape in the coming years.
