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Bridgeton, Missouri: Rising Home Values Amid Stable 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
Bridgeton, Missouri, a small city in St. Louis County spanning 15.24 square miles, has experienced significant changes in its housing landscape over the past decade. This analysis examines the intricate relationship between ownership rates, average home prices, and average rent prices in Bridgeton from 2013 to 2024, revealing a trend of increasing property values and a gradual shift from homeownership to renting.
From 2013 to 2022, Bridgeton's homeownership rate declined from 64% to 60%, while average home prices showed a consistent upward trend. The average home price rose from $146,726 in 2013 to $242,256 in 2022, representing a substantial 65.1% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, between 0.1% and 0.4%, and Bridgeton's homeownership rate remained stable at around 64%. However, as interest rates rose more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined slightly to 62% by 2019. This trend aligns with the principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in Bridgeton increased from 33% in 2013 to 40% in 2022. Interestingly, average rent prices did not show a consistent upward trend during this period. The average rent peaked at $1,036 in 2014 and 2015, then fluctuated in subsequent years, reaching $964 in 2022. This relatively stable rent environment, coupled with rising home prices, may have contributed to the shift towards renting for some residents.
Recent data shows that the average home price in Bridgeton reached $254,915 in 2023 and further increased to $261,647 in 2024, representing year-over-year increases of 5.2% and 2.6%, respectively. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may continue to impact homeownership rates in the city.
Predictive models forecast that average home prices in Bridgeton will continue to rise over the next five years, albeit at a potentially slower rate due to the higher interest rate environment. By 2029, average home prices could reach approximately $300,000 to $320,000, assuming a conservative annual growth rate of 3-4%. Average rent prices are expected to show moderate growth, potentially reaching $1,100 to $1,200 per month by 2029, reflecting a 2-3% annual increase.
In conclusion, Bridgeton has experienced a gradual shift from homeownership to renting over the past decade, coinciding with a significant increase in average home prices. The interplay between federal interest rates, home prices, and rent costs has shaped these trends. As the city moves forward, the continued rise in home prices and higher interest rates may further influence the balance between homeowners and renters in Bridgeton, potentially favoring the rental market if homeownership becomes less affordable for a larger segment of the population.
