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Bowling Green, Missouri: Rising Home Values Amid Declining Ownership
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
Bowling Green, a small city in Missouri with a zip code of 63334, has experienced significant changes in its housing market and demographics over the past decade. Spanning just 2.69 square miles, this city has witnessed fluctuations in population and housing trends that reflect broader economic shifts. The homeownership rate in Bowling Green has shown a slight decline over the years, decreasing from 67% in 2013 to 65% in 2022. This trend coincides with substantial growth in average home prices. In 2016, the average home price was $113,672, rising to $190,530 by 2022, representing a 67.6% increase over six years. This rapid appreciation in home values may have contributed to the slight decrease in homeownership, as rising prices could have made purchasing a home more challenging for some residents.
Federal interest rates have played a role in shaping homeownership trends in Bowling Green. From 2013 to 2016, interest rates were historically low, ranging from 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at around 66-67%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, a slight decline in homeownership to 65% was observed. This suggests that higher interest rates may have made mortgages less affordable, potentially impacting homeownership rates.
The rental market in Bowling Green has also shown interesting trends. The percentage of renters increased slightly from 33% in 2013 to 35% in 2022. Concurrently, average rent prices rose from $566 in 2013 to $656 in 2022, an increase of 15.9%. This moderate rise in rent prices, compared to the more substantial increase in home prices, may have made renting a more attractive option for some residents, contributing to the slight increase in the renter population.
In 2023 and 2024, the housing market in Bowling Green continued to evolve. The average home price in 2023 was $186,471, showing a slight decrease from 2022. However, in 2024, prices rebounded to $191,122, surpassing the 2022 levels. This occurs against a backdrop of significantly higher interest rates, with 2023 seeing rates at 5.02% and 2024 at 5.33%. These higher rates could potentially impact affordability and market dynamics in the coming years.
Looking ahead, predictive models suggest that average home prices in Bowling Green may continue to rise moderately over the next five years, potentially reaching around $210,000 by 2029. This projection assumes a steady economic environment and continued demand in the area. For rent prices, the model indicates a potential increase to approximately $700 per month by 2029, reflecting a steady but more modest growth compared to home prices.
In summary, Bowling Green has experienced significant changes in its housing market over the past decade. The city has seen substantial appreciation in home values, moderate increases in rent prices, and a slight shift from homeownership to renting. The interplay between rising home prices, changing interest rates, and demographic shifts has shaped these trends. As the city moves forward, it will likely continue to see moderate growth in both home prices and rent, with potential for further shifts in the balance between homeowners and renters depending on economic conditions and housing affordability.
