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Freeburg: Shifting Home Values and Ownership in a Small Missouri Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Freeburg, located in Missouri, is a small community that has experienced significant changes in its housing market over the past decade. The city, spanning just 0.83 square miles, has seen fluctuations in homeownership rates and average rent prices, reflecting broader economic trends and local developments.
The homeownership rate in Freeburg has remained relatively high, though it has experienced some fluctuations. In 2013, 90% of residents were homeowners, a figure that remained stable through 2015. However, there was a slight decline to 80% by 2018, which persisted through 2021. Interestingly, 2022 saw a rebound to 84% homeownership. The 2023 average home price was $289,409, slightly decreasing to $288,970 in 2024.
The relationship between federal interest rates and homeownership rates in Freeburg aligns with well-established economic principles. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates stayed high at 89% to 92%. The gradual increase in interest rates from 2017 to 2019 (1% to 2.16%) corresponded with a slight decrease in homeownership to 81% by 2019. The sharp rise in interest rates to 5.02% in 2023 and 5.33% in 2024 may have contributed to the slight decrease in average home prices observed between these two years.
Renter percentages in Freeburg have shown an inverse relationship to homeownership rates, as expected. The percentage of renters increased from 10% in 2013 to 20% in 2018, remaining at this level through 2021 before decreasing slightly to 16% in 2022. Average rent prices have shown considerable volatility. In 2013, the average rent was $409, which decreased to $285 by 2016. There was a significant spike to $652 in 2019, followed by a sharp decline to $285 in 2021, before rising again to $424 in 2022. These fluctuations may be attributed to changes in local economic conditions and housing supply.
The 2023 and 2024 data show a slight downward trend in average home prices, from $289,409 to $288,970. This minor decrease of 0.15% occurs against the backdrop of rising interest rates, which reached 5.33% in 2024. These figures suggest a potential cooling in the local housing market, possibly influenced by the higher cost of borrowing.
Looking ahead, predictive models suggest that average home prices in Freeburg may continue to experience modest fluctuations over the next five years. If current trends persist, we might see average home prices hovering around $285,000 to $295,000. Rent prices could stabilize in the $400 to $500 range, assuming no major economic disruptions or significant changes in local housing policies.
In summary, Freeburg has maintained a high rate of homeownership despite some fluctuations. The interplay between interest rates, homeownership, and rent prices reflects both national economic trends and local market dynamics. The recent slight decrease in average home prices, coupled with rising interest rates, suggests a potential shift in the local housing market that will be important to monitor in the coming years.
