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Delta, Missouri: Rising Home Values and Ownership in a Resilient Small 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
Delta, Missouri, is a small community that has experienced significant demographic shifts over the past decade. The city has seen a notable trend towards increased homeownership, with the percentage of owner-occupied homes rising from 64% in 2013 to 77% in 2022. This change has occurred alongside fluctuations in average home prices and rent values, creating a dynamic housing market in this Missouri town.
The trend of homeownership in Delta shows a strong positive correlation with average home prices. In 2016, when average home prices were $90,126, the homeownership rate was 66%. As average home prices steadily increased to $118,409 by 2022, the homeownership rate also rose to 77%. This suggests that rising property values have not deterred residents from purchasing homes, possibly indicating a growing local economy or increased desirability of the area.
Federal interest rates appear to have played a role in homeownership trends in Delta. From 2016 to 2020, when interest rates were relatively low, ranging from 0.4% to 2.16%, homeownership increased from 66% to 74%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. The continued increase in homeownership to 77% in 2022, despite a rise in interest rates to 1.68%, suggests other factors may also be influencing this trend.
Conversely, the percentage of renters in Delta has decreased from 36% in 2013 to 23% in 2022. Despite this decline, average rent prices have shown an upward trend, increasing from $439 in 2013 to $662 in 2022. This increase in rent prices, coupled with a decreasing renter population, could indicate a shortage of rental properties or an improvement in the quality of available rentals. The city's population fluctuations, from 848 in 2013 to 562 in 2022, may also be influencing these rental market dynamics.
In 2023 and 2024, Delta's housing market continued to evolve. Average home prices reached $123,646 in 2023, the highest point in the available data. However, there was a slight decrease to $119,553 in 2024. This coincided with federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, potentially influencing buyer behavior and home prices.
Looking ahead, predictive models suggest that average home prices in Delta may continue to experience moderate growth over the next five years, albeit at a slower pace than seen in recent years due to higher interest rates. Rent prices are expected to follow a similar trend, with gradual increases likely as the rental market adjusts to the changing population and homeownership landscape.
In summary, Delta has witnessed a significant shift towards homeownership, with property values rising despite fluctuations in population. The rental market has seen decreasing occupancy but increasing prices, suggesting a complex interplay of supply, demand, and local economic factors. The city's housing market appears resilient, adapting to changes in interest rates and demographic shifts, and is poised for continued, though potentially more moderate, growth in both home values and rental prices in the coming years.
