Loading Content...
Des Peres, Missouri: Stable Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Des Peres, Missouri, is a small suburban city located in St. Louis County, known for its excellent schools and high quality of life. The city has maintained a consistently high rate of homeownership over the years, with average home prices showing a steady upward trend. Meanwhile, average rent prices have fluctuated, reflecting the limited rental market in this predominantly owner-occupied community.
The homeownership rate in Des Peres has remained remarkably stable, hovering around 94% from 2013 to 2022. This high rate of ownership coincides with a significant increase in average home prices. In 2010, the average home price was $373,453, which grew steadily to reach $578,061 by 2022, representing a 54.8% increase over 12 years. This trend suggests a strong correlation between the city's high homeownership rate and rising property values, indicating a desirable and stable housing market.
Federal interest rates have played a role in supporting homeownership in Des Peres. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to maintaining the high homeownership rate by making mortgages more affordable. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate in Des Peres remained steady at 94%, demonstrating the city's strong preference for owner-occupied housing.
The rental market in Des Peres, while small, has shown some interesting trends. The percentage of renters increased slightly from 5% in 2013 to 7% in 2015 and 2017, before settling back to 6% from 2019 to 2022. Average rent prices have fluctuated over this period. In 2013, the average rent was $1,855, which remained relatively stable until 2018 when it jumped to $2,146. However, 2019 saw a significant drop to $1,395, followed by increases to $2,069 in 2021 and $2,101 in 2022. These fluctuations may be attributed to the limited rental inventory and the small changes in the renter population.
In 2023 and 2024, Des Peres has experienced continued growth in average home prices, reaching $606,586 in 2023 and $629,588 in 2024. This represents a 4.9% and 3.8% year-over-year increase, respectively. Concurrently, federal interest rates have risen significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in Des Peres will continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are expected to stabilize or increase moderately, reflecting the limited rental market and the city's continued preference for homeownership.
In summary, Des Peres has maintained a remarkably high and stable homeownership rate despite significant increases in average home prices. The city's housing market has shown resilience in the face of changing economic conditions, including fluctuations in federal interest rates. While the rental market remains small, it has experienced some volatility in pricing. The continued rise in home values, even in the face of higher interest rates, underscores Des Peres' enduring appeal as a desirable suburban community.
