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Columbia, Missouri: Rising Home Values and Stable Ownership in a University Town
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
Columbia, Missouri, is a vibrant college town known for hosting the University of Missouri. This dynamic city has experienced significant growth and changes in its housing market over the past decade. From 2013 to 2022, Columbia saw fluctuations in homeownership rates, with a general trend towards a more balanced mix of owners and renters. During this period, average home prices and average rent prices both showed upward trajectories, reflecting the city's increasing desirability and economic growth.
The relationship between homeownership percentages and average home prices in Columbia reveals an interesting trend. In 2013, the homeownership rate was 47%, with average home prices at $166,914. As average home prices steadily increased, reaching $275,806 in 2022, the homeownership rate remained relatively stable, ending at 49% in 2022. This suggests that despite rising home prices, Columbia residents maintained their ability to purchase homes, possibly due to income growth or other economic factors supporting homeownership.
Federal interest rates have played a role in shaping homeownership trends in Columbia. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates slightly decreased from 47% to 45%. However, as interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates actually increased, reaching 50% by 2019. This counterintuitive trend might be attributed to other local economic factors or housing policies specific to Columbia.
Renter percentages and average rent prices in Columbia have shown a correlation over the years. In 2013, the renter-occupied percentage was 53%, with an average rent of $767. As the renter percentage increased to 56% in 2015, average rent remained relatively stable at $768. However, by 2022, as the renter percentage decreased slightly to 51%, average rent had risen to $968. This increase in average rent despite a slight decrease in renter percentage could be attributed to factors such as population growth (from 115,287 in 2013 to 128,545 in 2022) and increased demand for rental properties.
In 2023 and 2024, Columbia experienced further increases in average home prices, reaching $288,607 in 2023 and $295,323 in 2024. These rises coincided with significant increases in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests strong demand and a robust local housing market.
Looking ahead, predictive models forecast continued growth in both average home prices and average rent prices over the next five years. Average home prices are expected to surpass $320,000 by 2029, while average rent prices could reach $1,100 per month. These projections are based on historical trends and assume continued population growth and economic stability in Columbia.
In summary, Columbia's housing market has demonstrated resilience and growth over the past decade. The city has maintained a relatively balanced mix of homeowners and renters despite rising home prices and fluctuating interest rates. The steady increase in both average home prices and average rent prices reflects the city's growing attractiveness and economic vitality. As Columbia continues to evolve, its housing market is poised for further growth, presenting both opportunities and challenges for residents and policymakers alike.
