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Bourbon's Housing Market: Rising Home Values and Shifting Ownership Patterns
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
Bourbon, Missouri, a small urban center with approximately 2,700 residents, has experienced significant changes in its housing market over the past decade. The city has seen a notable increase in homeownership rates and substantial growth in average home prices, reflecting both broader economic trends and local market dynamics. Homeownership in Bourbon has shown a marked upward trend. The homeownership rate increased from 63% in 2013 to 73% in 2022. This rise coincided with a substantial increase in average home prices, which grew from $90,129 in 2017 to $138,014 in 2022, representing a 53% increase over five years. The relationship between federal interest rates and homeownership rates in Bourbon aligns with established economic patterns. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 1.68%, homeownership rates in the city increased from 63% to 74%. This correlation suggests that the low-interest environment made mortgages more affordable, encouraging more residents to purchase homes.
Conversely, the percentage of renters in Bourbon has decreased over time, from 37% in 2013 to 27% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. The average rent increased from $650 in 2013 to $955 in 2022, a 47% rise over nine years. This increase in rent prices, despite a smaller renter population, may indicate a tightening rental market or improvements in rental property quality.
In 2023 and 2024, Bourbon's housing market continued to evolve. The average home price in 2023 reached $140,251, a slight increase from 2022. However, in 2024, there was a minor dip to $139,294. This slight decrease coincides with a significant rise in federal interest rates, which increased to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may have contributed to the slight cooling in home prices.
Looking ahead, predictive models suggest that average home prices in Bourbon may continue to rise moderately over the next five years, potentially reaching around $150,000 by 2029. This growth rate is expected to be slower than the rapid increases seen in previous years. Average rent prices are also projected to increase, potentially surpassing $1,100 per month by 2029, assuming current economic conditions and local market factors remain stable.
In summary, Bourbon has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. The rental market, while shrinking in terms of population, has seen substantial price increases. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. Moving forward, both home prices and rents are expected to continue their upward trajectory, albeit at a more moderate pace.
