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Dearborn, Missouri: Rising Home Values and High Ownership Rates 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
Dearborn, Missouri, is a small yet vibrant community located in Platte County. This charming city has experienced notable fluctuations in its demographics and housing market over the past decade. Homeownership rates have remained relatively stable, hovering around 80-85%, while average home prices have shown a consistent upward trend. Average rent prices, on the other hand, have displayed more volatility.
The relationship between homeownership rates and average home prices in Dearborn reveals an interesting dynamic. Despite the steady increase in average home prices from $148,547 in 2010 to $278,641 in 2022, homeownership rates have remained remarkably resilient. In 2013, the homeownership rate stood at 80%, and by 2022, it had increased to 88%, indicating a strong preference for homeownership among residents even as prices rose. This trend suggests that the local economy and housing market have remained robust enough to support continued homeownership despite increasing property values.
Federal interest rates have played a significant role in shaping homeownership trends in Dearborn. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 0.18%. This favorable lending environment likely contributed to the maintenance of high homeownership rates, as lower interest rates typically make mortgages more affordable. The slight dip in homeownership to 81% in 2017 coincided with a rise in federal interest rates to 1%, but the rate quickly rebounded and continued to climb in subsequent years.
Renter percentages and average rent prices in Dearborn have shown some correlation over the years. In 2013, when the renter-occupied rate was 19%, the average rent was $641. As the renter percentage decreased to 15% in 2015, the average rent also slightly decreased to $634. However, by 2017, as the renter percentage increased back to 19%, the average rent rose significantly to $792. This suggests that changes in rental demand may influence rental prices in the city. The population growth from 1,569 in 2010 to 1,770 in 2022 may have also contributed to the overall increase in rental prices due to higher demand for housing.
Looking at the most recent data, the average home price in Dearborn reached $284,982 in 2023 and further increased to $293,427 in 2024. This continued upward trend in home values occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the local housing market appears to remain strong, with prices continuing to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Dearborn will continue to rise, potentially reaching around $340,000 by 2029. This projection is based on the consistent growth observed over the past decade and assumes continued economic stability. For average rent prices, we expect a more moderate increase, potentially reaching approximately $850 per month by 2029, factoring in historical fluctuations and the city's steady population growth.
In summary, Dearborn has demonstrated a robust housing market characterized by high and increasing homeownership rates, steadily rising average home prices, and fluctuating but generally increasing average rent prices. The resilience of homeownership rates in the face of rising home prices suggests a strong local economy and a continued preference for homeownership among residents. The interplay between federal interest rates, housing prices, and ownership rates highlights the complex dynamics at work in this small Missouri city's real estate market.
