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Gallatin, Missouri: Home Values Double as Ownership Rates Decline
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Gallatin, a small city in Missouri, has experienced notable shifts in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns in the local real estate landscape.
The homeownership rate in Gallatin has fluctuated over the years, showing a general downward trend from 72% in 2013 to 64% in 2022. This decline in homeownership coincides with a significant increase in average home prices. In 2012, the average home price in Gallatin was $97,548, and by 2022, it had risen to $213,750, representing an impressive 119% increase over a decade.
Federal interest rates have played a role in shaping homeownership trends in Gallatin. The period from 2012 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a more pronounced decline, dropping to 64% by 2022.
The rental market in Gallatin has shown interesting trends as well. The percentage of renters increased from 28% in 2013 to 36% in 2022. This rise in renter-occupied housing coincided with an increase in average rent prices. In 2013, the average rent was $552, which grew to $698 by 2022, representing a 26% increase. The population of Gallatin decreased from 2,484 in 2013 to 2,265 in 2022, suggesting that the increase in rental demand was not driven by population growth but rather by shifts in housing preferences or economic factors.
In 2023 and 2024, Gallatin's housing market continued to evolve. The average home price reached $221,951 in 2023 and further increased to $231,546 in 2024. This represents a steady growth of 4.5% and 4.3% respectively, year over year. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, predictive models suggest that average home prices in Gallatin may continue to rise over the next five years, potentially reaching around $275,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $800 per month within the same timeframe.
In summary, Gallatin has experienced a gradual shift towards renting, with homeownership rates declining as both home prices and rent costs have increased. The interplay between federal interest rates, housing affordability, and local economic factors has shaped these trends. As the city moves forward, it will be crucial to monitor these patterns and their impact on the local housing market and community dynamics.
