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Carrollton, Missouri: Rising Home Values and Shifting Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Carrollton, Missouri, has experienced significant changes in its housing market over the past decade. This analysis examines trends in homeownership rates, average home prices, and average rent prices in Carrollton, revealing interesting patterns and potential future directions for the local real estate landscape.
From 2013 to 2022, Carrollton witnessed a gradual decline in homeownership rates, falling from 70% to 56%. Simultaneously, average home prices in the city showed a strong upward trend during this period. In 2013, the average home price was $49,851, which more than doubled to $117,124 by 2022. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
The fluctuations in federal interest rates have likely influenced Carrollton's homeownership trends. In 2013, when homeownership was at 70%, the federal interest rate was just 0.11%. As interest rates gradually increased, reaching 1.68% in 2022, homeownership rates declined to 56%. This pattern aligns with the general economic principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
As homeownership rates decreased, the percentage of renters in Carrollton naturally increased, rising from 30% in 2013 to 44% in 2022. During this same period, average rent prices also saw an upward trend, albeit less dramatic than home prices. The average rent increased from $595 in 2013 to $719 in 2022, representing a 20.8% increase over nine years. This growth in both renter population and rent prices suggests a strengthening rental market in Carrollton.
Looking at the most recent data, the average home price in Carrollton continued its upward trajectory, reaching $123,943 in 2023 and $131,506 in 2024. This represents a 12.3% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the pace of home price appreciation and affect homeownership rates in the coming years.
Applying predictive models to forecast the next five years, we can anticipate continued growth in both average home prices and rent prices in Carrollton. Based on historical trends, average home prices could potentially reach around $150,000 to $160,000 by 2029. Average rent prices might increase to approximately $800 to $850 per month in the same timeframe. However, these projections assume a continuation of current trends and do not account for unforeseen economic changes or local policy shifts.
In summary, Carrollton's housing market has been characterized by declining homeownership rates, rapidly increasing average home prices, and moderate growth in average rent prices over the past decade. The interplay between these factors, along with changes in federal interest rates, has shaped the city's real estate landscape. As Carrollton moves forward, balancing affordability with market growth will likely be a key challenge for local policymakers and residents alike.
