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Hartville, Missouri: Fluctuating Home Values and Ownership Rates in a Small City
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
Hartville, a small city in Missouri, has experienced fluctuating trends in homeownership rates, average home prices, and average rent prices over the past decade. This analysis explores these trends and their interrelationships, providing insights into the city's housing market dynamics. From 2013 to 2022, Hartville's homeownership rate showed a slight overall decline, moving from 73% to 68%. During this period, average home prices saw a significant increase, particularly from 2020 to 2022. In 2020, the average home price was $129,345, which rose to $190,258 by 2022, representing a substantial 47% increase in just two years.
The relationship between federal interest rates and homeownership rates in Hartville follows a general trend seen nationwide. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates in Hartville remained relatively stable, fluctuating between 70% and 78%. However, as interest rates began to rise sharply in 2022 to 1.68%, the homeownership rate decreased to 68%, suggesting that higher interest rates may have deterred some potential buyers.
Renter percentages in Hartville have shown an inverse relationship to homeownership rates, naturally increasing as homeownership decreased. The renter percentage rose from 27% in 2013 to 32% in 2022. Interestingly, average rent prices in Hartville have been volatile during this period. The average rent peaked at $475 in 2017, dropped significantly to $247 in 2019, and then rebounded to $522 in 2022. This represents a 111% increase in average rent from 2019 to 2022, which could be attributed to increased demand for rental properties as homeownership became less affordable.
In 2023, the average home price in Hartville reached $197,724, marking a 3.9% increase from 2022. However, in 2024, there was a slight decrease to $187,448, a 5.2% drop. This coincides with federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which may have cooled the housing market.
Looking ahead, predictive models suggest that average home prices in Hartville may stabilize or experience modest growth over the next five years, assuming interest rates remain elevated. Average rent prices are likely to continue their upward trend, albeit at a more moderate pace, as demand for rental properties remains strong in the face of potentially reduced homeownership affordability.
In summary, Hartville's housing market has shown resilience and growth, with significant increases in both average home prices and rent prices from 2020 to 2022. The recent slight decline in home prices coupled with rising interest rates suggests a potential market correction. The inverse relationship between homeownership and rental rates, along with the volatility in rent prices, underscores the dynamic nature of Hartville's housing market. These trends highlight the importance of monitoring economic factors and local market conditions in understanding and predicting future housing market behavior in Hartville.
