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Frankford, Missouri: Average Home Values and Ownership in a Resilient Small-City Market
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
Frankford, a small city in Missouri, has experienced notable demographic and housing market changes over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in Frankford from 2013 to 2022, with a focus on the relationship between these factors and federal interest rates.
The homeownership rate in Frankford has shown a gradual decline from 2013 to 2022. In 2013, 78% of housing units were owner-occupied. This percentage decreased to 71% by 2022, indicating a shift towards more renter-occupied properties. Concurrently, average home prices in Frankford have seen a significant increase. From 2019 to 2022, the average home price rose from $149,501 to $232,824, representing a substantial 55.7% increase over just three years.
The relationship between federal interest rates and homeownership rates in Frankford appears to follow the well-established trend of lower interest rates encouraging homeownership. For instance, when federal interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), Frankford's homeownership rate remained relatively stable at 74-75%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate dropped to 71%, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages in Frankford have inversely mirrored the homeownership trends, increasing from 22% in 2013 to 29% in 2022. Interestingly, average rent prices have shown fluctuations during this period. In 2013, the average rent was $676, which decreased to $571 in 2016 before rising again to $671 in 2022. These fluctuations in rent prices don't appear to have a direct correlation with the increasing renter population, suggesting other factors such as local economic conditions or housing supply may be influencing rent prices.
As of 2024, the average home price in Frankford stands at $235,226, showing a slight increase from the 2023 value of $229,817. This upward trend in home prices continues despite the federal interest rate rising to 5.33% in 2024, up from 5.02% in 2023. These higher interest rates may impact future homeownership rates and housing market dynamics in Frankford.
Looking ahead, predictive models suggest that average home prices in Frankford may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Rent prices are also expected to increase moderately, driven by the growing renter population and overall housing demand in the city.
In summary, Frankford has experienced a gradual shift from homeownership to renting over the past decade, accompanied by significant increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of Frankford's housing market. As the city continues to grow and evolve, these trends will likely shape its residential landscape in the coming years.
