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Grant Beach: Rising Home Values Amid Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Grant Beach, a neighborhood in Springfield, Missouri, has experienced significant changes in its real estate market and demographic composition over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic and social changes in the region. The relationship between homeownership percentages and average home prices in Grant Beach reveals an interesting trend. In 2013, the homeownership rate was 42% with an average home price of $40,585. By 2019, homeownership rates declined to 28% while average home prices increased to $63,222. This inverse relationship continued into 2022, with homeownership rising slightly to 36% as average home prices surged to $102,004. This trend suggests that rising home prices may have initially pushed some residents towards renting, but as prices continued to climb, those who could afford to buy did so, potentially as an investment or to secure housing before further price increases.
Federal interest rates have played a significant role in shaping homeownership trends in Grant Beach. During the period of historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates actually decreased from 42% to 31%. This counterintuitive trend might be attributed to other local economic factors outweighing the benefits of low interest rates. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized and even slightly increased to 36%, possibly indicating that residents were motivated to purchase homes before rates climbed further.
The renter population in Grant Beach has shown a general upward trend, coinciding with increases in average rent prices. In 2013, 58% of residents were renters, with an average rent of $532. By 2019, the renter percentage had increased to 71%, with average rent rising to $605. In 2022, despite a slight decrease in renter percentage to 64%, average rent jumped significantly to $822. This trend suggests that despite rising rental costs, many residents continued to choose renting over buying, possibly due to the even steeper increases in home prices or other economic factors affecting their ability to purchase homes.
As of 2024, the average home price in Grant Beach has reached $115,791, representing a substantial increase from previous years. This price point, coupled with the current federal interest rate of 5.33%, presents a challenging environment for potential homebuyers. The higher interest rates may deter some buyers, potentially leading to a slowdown in the rapid home price appreciation seen in recent years.
Looking ahead, predictive models suggest that both average home prices and rent prices in Grant Beach are likely to continue their upward trajectory over the next five years, albeit at a more moderate pace. Home prices are projected to increase by approximately 3-5% annually, reaching around $134,000 by 2029. Average rent prices are expected to grow by 2-4% per year, potentially reaching $950 by 2029. These projections assume relatively stable economic conditions and no major disruptions to the local housing market.
In summary, Grant Beach has experienced a significant shift from homeownership to renting over the past decade, driven by rapidly increasing home prices. Despite this trend, recent years have shown a slight reversal, with homeownership rates beginning to climb again. The neighborhood's real estate market has demonstrated remarkable resilience and growth, with both home and rent prices reaching new highs. As interest rates continue to play a crucial role in shaping buying decisions, the coming years are likely to see a more balanced market with moderate but steady growth in both the ownership and rental sectors.
