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Brentwood, Springfield: Rising Home Values Amidst Fluctuating Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Brentwood, a neighborhood in Springfield, Missouri, has experienced significant changes in its real estate market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and rental markets from 2013 to 2024, as well as projections for the future. Homeownership rates in Brentwood have fluctuated considerably between 2013 and 2022. Starting at 80% in 2013, the rate remained stable until 2015 before dropping to 74% in 2016. The rate continued to vary, reaching its lowest point of 65% in 2020, then rebounding to 73% in 2022. Simultaneously, average home prices in the neighborhood have shown a consistent upward trend. From $127,997 in 2013, prices rose steadily to $250,349 in 2022, marking a substantial 95.6% increase over this period.
The interplay between federal interest rates and homeownership rates in Brentwood presents an intriguing pattern. During the period of extremely low interest rates (0.11% to 0.13%) from 2013 to 2015, homeownership rates remained high at around 80-81%. As interest rates began to climb from 2016 onwards, reaching 1.83% in 2018, homeownership rates initially declined to 71%. However, despite further increases in interest rates, homeownership rates stabilized and even showed a slight increase by 2022, indicating that other local factors may have influenced homebuying decisions in the neighborhood.
Renter percentages in Brentwood have generally moved inversely to homeownership rates. The percentage of renters increased from 20% in 2013 to a peak of 35% in 2020, before settling at 27% in 2022. Average rent prices have demonstrated an overall upward trend, rising from $928 in 2013 to $1,055 in 2022, a 13.7% increase. Notably, the most significant jump in average rent occurred between 2015 and 2016, increasing from $978 to $1,040, coinciding with a decrease in homeownership rates.
In recent years, the real estate market in Brentwood has continued to evolve. The average home price reached $261,390 in 2023, with federal interest rates at 5.02%. In 2024, there was a further increase in average home prices to $269,611, while interest rates rose slightly to 5.33%. These figures suggest a continuing trend of rising home values despite higher interest rates, indicating strong demand in the Brentwood real estate market.
Looking towards the future, predictive models suggest that average home prices in Brentwood may continue to rise over the next five years. Projections indicate that prices could potentially reach around $300,000 by 2029. Similarly, average rent prices are expected to increase, possibly surpassing $1,200 per month within the same timeframe. However, it is important to note that these projections are subject to various economic factors and local market conditions.
In conclusion, Brentwood has experienced a notable increase in average home prices and rent over the past decade, accompanied by fluctuating homeownership rates. The neighborhood has demonstrated resilience in maintaining relatively high homeownership levels despite rising interest rates. The continued growth in home values, even in the face of higher interest rates in recent years, suggests a robust and desirable real estate market in Brentwood. This trend highlights the neighborhood's attractiveness to both homeowners and investors, while also presenting potential challenges for affordability in the coming years.
