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Dixon, Missouri: Rising Home Values and Ownership Rates Amid Population Fluctuations
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
Dixon, Missouri, is a small community with a population that has fluctuated between 1,911 and 2,451 residents over the past decade. The city has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
Homeownership rates in Dixon have shown an overall upward trend, increasing from 60% in 2015 to 69% in 2022. This rise in homeownership coincided with fluctuations in average home prices. In 2015, the average home price was $105,742, which decreased slightly to $103,162 in 2016. However, prices began to climb steadily thereafter, reaching $161,934 by 2022. This represents a significant 57% increase in average home prices over seven years, despite the initial dip.
The relationship between federal interest rates and homeownership rates in Dixon aligns with well-established economic principles. As interest rates remained historically low from 2015 to 2021, ranging from 0.08% to 1.83%, homeownership rates generally increased. The low-interest environment likely made mortgages more accessible and attractive to potential buyers, contributing to the rise in homeownership from 60% to 70% during this period.
Renter percentages in Dixon have inversely mirrored the homeownership trend, decreasing from 40% in 2015 to 31% in 2022. Average rent prices have shown moderate fluctuations during this period. In 2015, the average rent was $667, which increased to $688 in 2017 before declining to $638 in 2021. By 2022, average rent had risen again to $683. These changes in rent prices don't show a strong correlation with the declining renter percentage, suggesting other factors, such as local economic conditions or housing availability, may have influenced renting patterns.
In 2023 and 2024, Dixon experienced a continued surge in average home prices. The average home price reached $176,938 in 2023 and further increased to $188,299 in 2024. This represents a substantial 16.3% increase over just two years from 2022 levels. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking a significant shift in the lending environment.
Looking ahead, predictive models suggest that average home prices in Dixon may continue to rise, albeit at a potentially slower rate due to higher interest rates. Over the next five years, average home prices could reach around $215,000 to $225,000, assuming a moderation in the recent rapid appreciation. Average rent prices are projected to follow a similar upward trajectory, potentially reaching $750 to $800 per month by 2029, reflecting ongoing demand for rental properties despite the strong homeownership trend.
In summary, Dixon has experienced a notable increase in homeownership rates alongside rising home prices, particularly in recent years. The rental market has seen more modest changes in both occupancy and prices. The sharp rise in interest rates in 2023 and 2024, coupled with continued home price appreciation, may impact future homeownership trends and affordability in the city.
