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Granby, Missouri: Rising Home Values and Strong Ownership in a Small Urban Center
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Granby, Missouri, is a small urban center that has experienced notable fluctuations in its housing market over the past decade. The city has maintained a relatively high rate of homeownership, with average home prices showing a consistent upward trend. Meanwhile, average rent prices have also seen increases, albeit with some variations.
The homeownership rate in Granby has generally remained above 70% since 2013, with some fluctuations. In 2013, the homeownership rate was 77%, and it reached its peak at 80% in 2021. Concurrently, average home prices have shown a steady increase. In 2012, the average home price was $79,414, and by 2022, it had more than doubled to $166,233. This significant rise in home values, coupled with the consistently high homeownership rates, suggests a strong preference for homeownership in Granby, despite the increasing costs.
Federal interest rates have played a role in shaping homeownership trends in Granby. From 2013 to 2020, interest rates remained relatively low, hovering around 0.1% to 0.4%. This period coincided with generally high homeownership rates in Granby, often above 70%. The low interest rates likely made mortgages more affordable, encouraging homeownership. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), we see a slight dip in homeownership to 75% in 2022, suggesting that higher borrowing costs may be impacting homebuying decisions.
Renter percentages in Granby have fluctuated inversely to homeownership rates, ranging from a low of 20% in 2021 to a high of 31% in 2018. Average rent prices have shown an overall upward trend, albeit with some year-to-year variations. In 2013, the average rent was $683, and it increased to $850 by 2022, representing a 24.5% increase over this period. The city's population has fluctuated during this time, from a high of 4,828 in 2012 to a low of 4,073 in 2015, which may have influenced rental demand and prices.
In 2023 and 2024, average home prices in Granby continued to rise, reaching $172,216 in 2023 and $172,901 in 2024. This represents a 4% increase from 2022 to 2023, and a modest 0.4% increase from 2023 to 2024, indicating a potential slowdown in price growth. Concurrently, federal interest rates have remained elevated at 5.02% in 2023 and 5.33% in 2024, which may be contributing to the deceleration in home price appreciation.
Looking ahead, based on the observed trends, we can project that average home prices in Granby may continue to increase over the next five years, but at a more moderate pace. Given the recent slowdown in price growth and high interest rates, we might expect annual increases of 2-3%, potentially reaching around $190,000 to $200,000 by 2029. Average rent prices are likely to continue their upward trajectory as well, potentially increasing by 3-4% annually, which could bring the average rent to approximately $1,000 by 2029.
In summary, Granby has maintained a strong homeownership culture despite rising home prices. The relationship between federal interest rates and homeownership rates is evident, with recent increases in rates potentially tempering homeownership growth. Rent prices have also trended upward, reflecting the overall increase in housing costs. The city's housing market appears to be entering a phase of more moderate growth, influenced by broader economic factors such as interest rates and population changes.
