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Charlack, Missouri: Rising Home Values Amidst Declining Ownership in a Small Urban 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
Charlack, located in Missouri, is a small urban community that has experienced significant demographic and housing market changes over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the shifting dynamics of the local real estate market.
The homeownership rate in Charlack has shown a general decline from 2013 to 2022. In 2013, 46% of housing units were owner-occupied, but by 2022, this figure had decreased to 40%. Conversely, the average home prices in the city have demonstrated a strong upward trend. In 2013, the average home price was $60,274, and by 2022, it had more than doubled to $121,309. This inverse relationship suggests that rising home prices may have made homeownership less accessible for many residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate in Charlack remained relatively stable, hovering around 46-51%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 40%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in Charlack has increased from 54% in 2013 to 60% in 2022. During this period, average rent prices also saw a steady rise. In 2013, the average rent was $785 per month, and by 2022, it had increased to $1,017, representing a 29.6% increase over nine years. The growing renter population, combined with rising rent prices, suggests a strong demand for rental properties in the area. This trend may be attributed to the city's increasing population, which grew from 1,310 in 2013 to 1,715 in 2022, potentially driving up demand for housing and, consequently, rent prices.
In 2023 and 2024, the average home prices in Charlack showed a slight fluctuation. The average home price in 2023 was $120,628, a minor decrease from 2022. However, in 2024, the price rebounded to $123,231. Interestingly, federal interest rates have continued to rise significantly, 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, based on the historical data and current trends, we can predict that average home prices in Charlack will continue to rise moderately over the next five years. The compound annual growth rate (CAGR) for home prices from 2013 to 2022 was approximately 8.1%. If this trend continues, we could expect average home prices to reach around $182,000 by 2029. Similarly, average rent prices have shown a CAGR of about 2.9% from 2013 to 2022. Projecting this growth rate forward, average rents could potentially reach approximately $1,175 per month by 2029.
In summary, Charlack has experienced a decline in homeownership rates alongside substantial increases in average home prices and rent costs. The inverse relationship between homeownership rates and home prices, coupled with the influence of federal interest rates, has reshaped the local housing market. The growing renter population and rising rent prices indicate a strong rental market, likely driven by population growth and possibly affordability challenges in the homeownership sector. As the city continues to evolve, these trends will play a crucial role in shaping its housing landscape in the coming years.
