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Gravois Park: Home Values, Ownership Trends, and Interest Rate Impacts
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
Gravois Park, a neighborhood in St. Louis, Missouri, has experienced significant changes in its housing market and demographic composition over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The percentage of owner-occupied homes in Gravois Park has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, 36% of homes were owner-occupied, but by 2019, this figure had dropped to 21%. However, there was a slight rebound to 29% by 2022. This trend in homeownership rates appears to have an inverse relationship with average home prices in the neighborhood. Average home prices fell from $101,122 in 2010 to a low of $45,595 in 2014, before beginning a steady climb to $128,433 in 2022. This suggests that as home prices decreased, more residents were able to afford homeownership, but as prices rose again, the percentage of homeowners declined.
Federal interest rates have played a role in shaping homeownership trends in Gravois Park. From 2010 to 2015, interest rates remained extremely low, hovering around 0.1% to 0.18%. During this period, homeownership rates in Gravois Park were relatively stable, ranging from 33% to 36%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates in the neighborhood declined, hitting a low of 21% in 2019 before slightly recovering to 29% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renter-occupied homes in Gravois Park has shown an overall increase from 64% in 2013 to 71% in 2022, with a peak of 79% in 2019. This trend correlates with the rise in average rent prices, which increased from $657 in 2013 to $861 in 2022. The population of Gravois Park has remained relatively stable during this period, fluctuating between 5,130 and 5,738 residents. The increasing renter percentage coupled with rising rent prices suggests a growing demand for rental properties in the neighborhood, possibly driven by the decreasing affordability of homeownership as average home prices rose.
In 2023 and 2024, Gravois Park has continued to see growth in its housing market. The average home price in 2023 was $134,353, and in 2024 it reached $136,196, showing a continued upward trend. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homeownership rates and could potentially slow the growth of home prices in the coming years.
Looking ahead, based on the historical trends and current market conditions, we can project that average home prices in Gravois Park are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. Over the next five years, average home prices could reach approximately $150,000 to $160,000. Average rent prices are also expected to increase, potentially reaching around $950 to $1,000 per month within the same timeframe.
In summary, Gravois Park has experienced a shift towards a renter-majority community over the past decade, with homeownership rates declining as average home prices and rent prices have increased. The neighborhood's housing market has shown resilience and growth, particularly in recent years, despite fluctuations in federal interest rates. These trends suggest a dynamic and evolving housing landscape in Gravois Park, with potential opportunities and challenges for both homeowners and renters in the coming years.
