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Hanley Hills: Rising Home Values Amid Shifting Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hanley Hills, located in Missouri, is a small community that has experienced notable shifts in its housing market over the past decade. The village has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The relationship between homeownership percentages and average home prices in Hanley Hills reveals an interesting trend. In 2013, the homeownership rate stood at 64%, with average home prices at $32,725. As homeownership rates declined to 50% by 2019, average home prices increased to $48,176. This inverse relationship continued into 2022, where homeownership slightly rebounded to 54%, while average home prices surged to $73,636. This suggests that as fewer residents owned homes, property values appreciated, potentially pricing out some prospective buyers.
Federal interest rates have played a significant role in shaping homeownership trends in Hanley Hills. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates in the village declined from 64% to 59%, contrary to the general expectation that lower rates encourage homeownership. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in Hanley Hills continued to decline, reaching 50% by 2019. This suggests that local factors may have had a stronger influence on homeownership than national interest rate trends during this period.
The rental market in Hanley Hills has shown a correlation between renter percentages and average rent prices. As the percentage of renters increased from 36% in 2013 to 50% in 2019, average rent prices fluctuated but generally trended downward, from $983 in 2013 to $949 in 2019. However, by 2022, despite a slight decrease in renter percentage to 46%, average rent prices increased to $1,040. This increase in rent prices, coupled with a slight rebound in homeownership, might indicate a tightening housing market with increased demand for both owned and rented properties.
In 2023 and 2024, Hanley Hills experienced continued growth in average home prices, reaching $78,513 in 2023 and $78,915 in 2024. This represents a significant increase from previous years, indicating a strong housing market. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership rates and market dynamics.
Looking ahead, predictive models suggest that average home prices in Hanley Hills may continue to rise over the next five years, albeit at a slower pace due to the higher interest rates. Average rent prices are also expected to increase moderately, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area.
In summary, Hanley Hills has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics. The inverse relationship between homeownership rates and home prices, coupled with the recent surge in property values despite rising interest rates, indicates a resilient and evolving housing market. The village's ability to maintain a balance between owned and rented properties will be crucial for its housing market stability in the coming years.
