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Branson's Housing Market: Rising Home Values and Shifting Ownership in the Entertainment Capital of the Ozarks
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
Branson, Missouri, a vibrant city known for its entertainment venues and scenic beauty, has experienced notable shifts in its housing market over the past decade. The city, with a population of 18,603 in 2022, has seen fluctuations in homeownership rates and significant increases in both average home prices and average rent prices.
The homeownership percentage in Branson has shown an interesting trend, particularly in recent years. In 2013, the homeownership rate stood at 49%. This figure decreased to 43% in 2016 but then began a steady climb, reaching 56% by 2021. Interestingly, this upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $124,608, which rose to $206,226 by 2021, representing a 65.5% increase over eight years.
The relationship between federal interest rates and homeownership rates in Branson presents a compelling narrative. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership in the city generally increased. This trend aligns with the economic principle that lower interest rates tend to encourage homeownership by making mortgages more affordable. The sharp rise in homeownership from 47% in 2018 to 56% in 2021 coincided with interest rates dropping from 1.83% to 0.08% during the same period.
Renter percentages and average rent prices in Branson have also shown notable trends. The percentage of renters peaked at 55% in 2016 when the average rent was $862. However, as homeownership increased, the renter percentage decreased to 44% by 2021, with average rent rising to $924. This inverse relationship between renter percentage and average rent prices suggests that as more people became homeowners, the rental market became more competitive, potentially driving up prices.
In 2023 and 2024, Branson's housing market continued to evolve. The average home price in 2023 reached $262,997, a significant jump from previous years. In 2024, the average home price slightly increased to $263,135. Interestingly, this period also saw a substantial rise in federal interest rates, 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.
Looking ahead, predictive models suggest that Branson's housing market will continue to grow, albeit at a more moderate pace. Average home prices are projected to increase by approximately 3-4% annually over the next five years, potentially reaching around $310,000 by 2029. Average rent prices are expected to follow a similar trend, with an estimated annual increase of 2-3%, potentially reaching around $1,050 per month by 2029.
In summary, Branson's housing market has demonstrated resilience and growth over the past decade. The city has seen a notable increase in homeownership rates, particularly during periods of low interest rates. Average home prices have more than doubled since 2010, reflecting strong demand and economic growth in the area. While the rental market has experienced some fluctuations, it has generally trended upward in terms of prices. As Branson continues to evolve, these housing trends will play a crucial role in shaping the city's future development and demographics.
