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Cairo, Missouri: Rising Home Values and Ownership Rates Reshape Small Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cairo, Missouri: Homeownership Surge and Property Value Growth Cairo, Missouri, a small community, has undergone significant changes in its housing market over the past decade. The village has experienced a notable increase in homeownership rates, alongside fluctuations in average home prices and rent costs. This analysis explores the intricate relationship between these factors and their impact on the local real estate landscape. From 2013 to 2022, Cairo saw a substantial increase in homeownership rates, rising from 78% to 91%. During this same period, average home prices showed a consistent upward trend. In 2013, the average home price was $111,562, and by 2022, it had risen to $222,835, representing a 100% increase over nine years. This correlation suggests that as home values appreciated, more residents were motivated to invest in property ownership.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained historically low, hovering around 0.1-0.4%. During this period, homeownership in Cairo increased from 78% to 82%. As interest rates began to rise gradually from 2017 to 2019, reaching 2.16%, homeownership continued to climb, reaching 89% by 2019. This trend indicates that despite rising interest rates, other factors such as local economic conditions and housing market dynamics were likely driving the increase in homeownership.
The rental market in Cairo has experienced a corresponding decline as homeownership increased. The percentage of renters decreased from 22% in 2013 to just 9% in 2022. Interestingly, average rent prices fluctuated during this period. In 2013, the average rent was $806, dropping to a low of $696 in 2016 before rising again to $805 in 2022. This suggests that while fewer people were renting, the demand for rental properties remained relatively stable, keeping rent prices from declining significantly despite the shrinking renter population.
In 2023 and 2024, the housing market in Cairo continued to evolve. The average home price reached $226,171 in 2023 and further increased to $241,232 in 2024, indicating ongoing appreciation in property values. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in Cairo are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices may stabilize or see modest increases as the rental market adjusts to the smaller pool of renters and potential shifts in housing preferences.
In summary, Cairo has experienced a significant shift towards homeownership over the past decade, accompanied by substantial growth in average home prices. The rental market has contracted in terms of occupancy but maintained relatively stable pricing. These trends, coupled with recent interest rate increases, suggest a dynamic housing market that continues to favor ownership while maintaining a small but resilient rental sector.
