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Grain Valley, Missouri: A Decade of Rising Home Values and 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
Grain Valley, Missouri, a growing city in Jackson County, has experienced significant growth over the past decade. With a population of 17,757 in 2022, this suburban community has shown a general trend of increasing homeownership rates and rising average home and rent prices, reflecting its attractiveness to both residents and investors.
Homeownership rates in Grain Valley have fluctuated but generally trended upward from 2013 to 2022. In 2013, the homeownership rate was 66%, and by 2022, it had increased to 68%. This trend coincided with a substantial rise in average home prices. In 2013, the average home price was $162,139, and by 2022, it had nearly doubled to $317,499. This significant increase in home values likely contributed to the city's appeal for homeowners, as it represented a strong investment opportunity.
The relationship between federal interest rates and homeownership rates in Grain Valley follows a generally expected pattern. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates in the city increased from 66% to 69%. This aligns with the principle that lower interest rates make homeownership more accessible due to reduced borrowing costs. However, as interest rates began to rise sharply in 2022 to 1.68%, there was a slight decrease in homeownership to 68%, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages in Grain Valley have inversely mirrored homeownership trends, decreasing from 34% in 2013 to 32% in 2022. Despite this slight decrease in the proportion of renters, average rent prices have steadily increased. In 2013, the average rent was $993, and by 2022, it had risen to $1,148, representing a 15.6% increase over nine years. This increase in rent prices, coupled with the growing population (from 14,798 in 2013 to 17,757 in 2022), suggests a consistent demand for rental properties in the area.
Looking at the most recent data, average home prices in Grain Valley continued to rise in 2023 and 2024, reaching $326,265 and $334,696 respectively. This represents a 2.8% increase from 2022 to 2023 and a further 2.6% increase from 2023 to 2024. Meanwhile, federal interest rates have also continued to climb, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and could potentially slow the rate of home price appreciation.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Grain Valley to continue rising, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $375,000 to $400,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,300 to $1,400 per month in the same timeframe, driven by population growth and increased property values.
In summary, Grain Valley has demonstrated strong growth in both population and property values over the past decade. Homeownership rates have generally increased, supported by rising home values and previously low interest rates. While recent interest rate hikes may temper this trend, the city's continued population growth and desirability suggest that both home prices and rent rates will likely continue to rise in the coming years, albeit potentially at a more moderate pace.
