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Downtown West St. Louis: Declining Home Ownership Amid Rising Rents and Interest Rates
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
Downtown West, a neighborhood in St. Louis, Missouri, has experienced significant changes in its real estate market over the past decade. The area has seen a decline in homeownership rates, fluctuations in average home prices, and an increase in rental prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Downtown West decreased from 27% in 2013 to 20% in 2022. This decline coincided with fluctuations in average home prices, which peaked at $201,862 in 2010, dropped to $124,934 in 2016, and then gradually recovered to $140,307 by 2022. The relationship between federal interest rates and homeownership rates in the neighborhood followed expected patterns, with low interest rates initially supporting homeownership, but rising rates from 2016 onwards coinciding with a decline in homeownership.
As homeownership decreased, the percentage of renters in Downtown West increased from 73% in 2013 to 80% in 2022. This shift was accompanied by a steady rise in average rent prices, from $959 in 2013 to $1,173 in 2022, representing a 22.3% increase over nine years. The growing renter population and rising rent prices suggest a strong demand for rental properties in the neighborhood, possibly driven by factors such as job opportunities, urban amenities, or changing lifestyle preferences.
Recent data shows that the average home price in Downtown West was $137,834 in 2023 and slightly decreased to $136,466 in 2024, indicating a stabilization in the housing market. Federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends in the neighborhood.
Predictive models forecast that average home prices in Downtown West may continue to experience modest growth over the next five years, potentially reaching around $145,000 to $150,000 by 2029. Average rent prices are expected to maintain their upward trajectory, potentially surpassing $1,300 per month within the next five years, assuming current economic conditions and local market factors remain relatively stable.
In conclusion, Downtown West has transformed into a predominantly renter-occupied neighborhood over the past decade, characterized by declining homeownership rates and rising average rent prices. Average home prices, after a significant drop in the early 2010s, have shown signs of recovery and stabilization. The interplay between federal interest rates, local market dynamics, and demographic changes continues to shape the real estate landscape of this St. Louis neighborhood.
