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Clinton, Missouri: Resilient Housing Market Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Clinton, Missouri, a small city in Henry County, has experienced significant changes in its housing market over the past decade. Known for its rich history and vibrant community, Clinton has seen notable fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Clinton has remained relatively stable, fluctuating between 65% and 70% from 2013 to 2022. During this period, average home prices have shown a significant upward trend. In 2016, the average home price in Clinton was $74,300. By 2022, this figure had more than doubled to $156,332, representing a substantial increase in property values over a six-year period.
The relationship between federal interest rates and homeownership rates in Clinton shows some correlation. For instance, in 2016, when interest rates were low at 0.4%, the homeownership rate was at a high of 70%. As interest rates began to rise in subsequent years, there was a slight decrease in homeownership, dropping to 65% by 2022 when interest rates reached 1.68%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Clinton have inversely mirrored homeownership rates, ranging from 30% to 35% between 2013 and 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $683, rising to a peak of $742 in 2016 before declining to $678 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the renter percentage, suggesting that other factors such as local economic conditions and housing supply may have played a role in determining rental costs.
In 2023, the average home price in Clinton slightly decreased to $155,771, while federal interest rates rose significantly to 5.02%. Moving into 2024, the average home price has rebounded to $161,392, with interest rates further increasing to 5.33%. These higher interest rates may impact affordability and potentially influence future homeownership rates in the city.
Looking ahead, predictive models suggest that average home prices in Clinton may continue to rise over the next five years, albeit at a more moderate pace than seen in recent years. This projection is based on the strong growth observed from 2016 to 2022 and the slight increase from 2023 to 2024. Rent prices are expected to remain relatively stable with potential for slight increases, influenced by factors such as housing demand and overall economic conditions in the area.
In summary, Clinton has experienced significant growth in average home prices over the past decade, with homeownership rates remaining relatively stable despite fluctuations in federal interest rates. The rental market has shown more volatility in pricing, while the proportion of renters has remained consistent. The city's housing market appears resilient, with potential for continued growth in property values in the coming years.
