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Cleveland, Missouri: Rising Home Values and Shifting Ownership in a Small City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cleveland, Missouri, a small city in Cass County, has experienced significant changes in its housing market over the past decade. The city has witnessed fluctuations in homeownership rates and substantial increases in both average home prices and rent prices, reflecting broader economic trends and local developments.
The homeownership rate in Cleveland has shown a general declining trend from 2013 to 2022, with some fluctuations. In 2013, the city had a high homeownership rate of 95%, which gradually decreased to 80% by 2022. This decline coincided with a substantial increase in average home prices. From 2017 to 2022, average home prices in Cleveland rose from $190,011 to $301,681, representing a 58.8% increase over five 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 have influenced homeownership trends in Cleveland. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.1% to 0.4%. During this time, homeownership rates remained relatively high, above 90%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a more pronounced decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
As homeownership rates declined, the percentage of renters in Cleveland increased from 5% in 2013 to 20% in 2022. This shift coincided with a steady rise in average rent prices. The average rent increased from $856 in 2013 to $1,066 in 2022, a 24.5% increase over nine years. The growing renter population and rising rent prices suggest an increasing demand for rental properties in the city, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, Cleveland's housing market showed signs of stabilization. The average home price slightly decreased to $299,139 in 2023 before rebounding to $300,423 in 2024. This relative stability comes despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may continue to impact homeownership affordability in the near future.
Looking ahead, predictive models suggest that Cleveland's housing market will likely continue its upward trajectory, albeit at a more moderate pace. Average home prices are projected to increase by approximately 2-3% annually over the next five years, potentially reaching around $340,000 by 2029. Average rent prices are expected to follow a similar trend, with annual increases of 3-4%, potentially reaching about $1,250 per month by 2029.
In summary, Cleveland, Missouri, has experienced a significant shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with rising home prices and rents, reflects a changing market dynamic. While recent data shows some stabilization in home prices, the ongoing trends of increasing rents and a growing renter population suggest a continued evolution of the city's housing market. These changes present both challenges and opportunities for residents and policymakers alike as Cleveland continues to grow and develop.
