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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dexter, Missouri, is a small urban community located in the southeastern part of the state. With a population of 13,085 in 2022 and covering an area of 7.21 square miles, this city has experienced subtle shifts in its housing market over the past decade. The ownership percentage has shown a slight decline, while average home prices have steadily increased. Average rent prices have fluctuated but generally trended upward.
The homeownership rate in Dexter has experienced a gradual decline from 2013 to 2019, dropping from 68% to 63%. However, there has been a reversal of this trend in recent years, with ownership rates increasing to 67% by 2022. Interestingly, this trend coincides with the rise in average home prices. In 2016, the average home price was $106,462, which increased to $150,456 by 2022, representing a 41.3% increase over six years. This suggests that despite rising home prices, there has been a renewed interest in homeownership in recent years.
Federal interest rates have played a significant role in shaping homeownership trends in Dexter. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which likely contributed to the relatively high homeownership rates during that time. As interest rates began to rise gradually from 2016 onwards, reaching 1.83% in 2018, we observed a corresponding decline in homeownership percentages. However, the sharp drop in interest rates in 2020 and 2021 to near-zero levels may have spurred the recent uptick in homeownership, despite rising home prices.
The renter population in Dexter has shown an inverse relationship to homeownership trends. The percentage of renters increased from 32% in 2013 to 37% in 2019, before declining slightly to 33% in 2022. Average rent prices have fluctuated over the years, starting at $696 in 2013, dropping to a low of $636 in 2015, and then rising to $717 in 2022. This represents a modest 3% increase in average rent over a nine-year period. The fluctuations in rent prices and renter percentages may be influenced by factors such as local economic conditions and housing availability.
In 2023 and 2024, Dexter's housing market continued to evolve. The average home price reached $153,453 in 2023, showing a slight increase from the previous year. However, in 2024, there was a minor correction with the average home price settling at $152,643. This slight dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be impacting home affordability and potentially cooling the market.
Looking ahead, predictive models suggest that average home prices in Dexter may continue to appreciate, albeit at a more moderate pace. Over the next five years, we can expect average home prices to potentially reach around $165,000 to $170,000, assuming current economic conditions persist. Average rent prices are also projected to increase gradually, potentially reaching $750 to $800 per month by 2029. However, these projections are subject to various factors including local economic developments, population changes, and broader market conditions.
In summary, Dexter's housing market has shown resilience and growth over the past decade. The recent trend of increasing homeownership rates, despite rising home prices, indicates a strong desire for property ownership in the community. The interplay between federal interest rates, home prices, and ownership rates highlights the complex dynamics of the local real estate market. As the city moves forward, balancing affordable housing options with steady market growth will be crucial for maintaining a diverse and thriving community.