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Gower, Missouri: Rising Home Values Amidst Fluctuating Ownership 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
Gower, Missouri, is a small but dynamic community located in Clinton County. With a population of 2,503 in 2022, this city has experienced notable shifts in its housing market over the past decade. The trends in homeownership percentages, average home prices, and average rent prices have shown significant fluctuations, reflecting broader economic changes and local market dynamics.
The homeownership rate in Gower has demonstrated a generally upward trend, particularly in recent years. In 2013, the homeownership rate stood at 81%, and after some fluctuations, it reached 87% by 2022. This substantial increase in homeownership coincided with a steady rise in average home prices. In 2013, the average home price was $141,662, and it grew consistently year over year, reaching $265,295 by 2022. This represents an impressive 87.3% increase in average home values over a nine-year period.
The relationship between federal interest rates and homeownership rates in Gower aligns with well-established economic principles. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.83%, the city saw a general increase in homeownership. The low-interest environment likely made mortgages more affordable, encouraging more residents to purchase homes. This is evident in the rise of homeownership from 81% in 2013 to 85% in 2021, and further to 87% in 2022, despite a slight increase in interest rates to 1.68% that year.
Conversely, the rental market in Gower has shown an inverse relationship to homeownership trends. The percentage of renters decreased from 19% in 2013 to 13% in 2022. Despite this decline in the renter population, average rent prices have generally increased, albeit with some fluctuations. In 2013, the average rent was $787, which rose to a peak of $957 in 2019 before settling at $793 in 2022. This overall increase in rent prices, despite a shrinking renter population, could indicate a tightening rental market or improvements in rental property quality.
Looking at the most recent data, 2023 saw average home prices in Gower reach $274,687, a 3.5% increase from 2022. This growth continued into 2024, with average home prices hitting $282,454. Interestingly, this price appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and increased further to 5.33% in 2024. This suggests a robust local housing market that has maintained momentum even in the face of higher borrowing costs.
Applying predictive models to forecast future trends, it's anticipated that average home prices in Gower will continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. The average home price could potentially reach around $320,000 by 2029. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of $850-$900 per month by 2029, assuming the current trends in population and housing supply continue.
In summary, Gower has experienced a significant shift towards homeownership, with a concurrent rise in average home prices over the past decade. The rental market, while shrinking in terms of occupancy, has seen generally increasing average rents. The resilience of the housing market, even in the face of rising interest rates, indicates a strong local economy and continued demand for housing in this Missouri city. These trends suggest that Gower remains an attractive location for homeowners, with potential for continued growth in property values in the coming years.
