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Fayette, Missouri: Rising Home Values and Ownership Trends in a Small Urban Center
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
Fayette, Missouri, is a small urban center located in the heart of the state. This city, with a land area of 2.22 square miles, has experienced fluctuating population trends over the past decade. Homeownership rates have generally remained stable, while average home prices have shown a consistent upward trend. Average rent prices, on the other hand, have displayed more volatility.
The homeownership rate in Fayette has remained relatively steady, with minor fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 70%, and by 2022, it had marginally increased to 71%. During this period, average home prices experienced significant growth. In 2012, the average home price was $99,200, and by 2022, it had risen to $182,657, representing an impressive 84% increase over a decade. This trend suggests that despite rising home prices, Fayette residents have maintained a strong inclination towards homeownership.
Federal interest rates have played a role in shaping homeownership trends in Fayette. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership rates in Fayette increased from 70% in 2013 to 73% in 2016, indicating that lower interest rates may have encouraged more residents to purchase homes. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline, settling at 71% in 2022.
Renter percentages in Fayette have shown an inverse relationship to homeownership rates, naturally fluctuating between 24% and 32% from 2013 to 2022. Average rent prices have been more volatile compared to home prices. In 2013, the average rent was $747, which decreased to $687 by 2019, representing an 8% decline. However, rent prices rebounded, reaching $797 in 2021 before dropping again to $692 in 2022. These fluctuations in rent prices don't seem to correlate strongly with changes in the renter population, suggesting other local factors may be influencing rental markets.
Looking at the most recent data, average home prices in Fayette continued their upward trajectory, reaching $193,147 in 2023 and further increasing to $197,616 in 2024. This represents a 5.7% increase from 2022 to 2023 and a 2.3% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Fayette will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $230,000 to $240,000, assuming a continuation of current economic conditions and local market factors. For average rent prices, the forecast suggests a potential stabilization with modest growth, potentially reaching $800 to $850 by 2029.
In summary, Fayette has demonstrated resilience in homeownership rates despite rising home prices. The relationship between federal interest rates and homeownership trends is evident, with lower rates generally corresponding to higher homeownership. The rental market has shown more volatility, both in terms of renter percentages and average rent prices. Looking ahead, while home prices are expected to continue rising, the pace of increase may slow down, and the rental market may see more stability with modest growth.
