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Hazelwood, Missouri: Rising Home Values Amidst Declining Ownership
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
Hazelwood, Missouri, a suburban city in St. Louis County, had a population of 25,184 in 2022. The city offers a mix of residential and commercial areas, and has experienced notable changes in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Hazelwood has shown a slight decline, dropping from 60% in 2014 to 56% in 2022. This trend coincided with significant changes in average home prices. In 2014, the average home price was $76,374, which steadily increased to $147,948 by 2022, representing a substantial 93.7% increase over eight years. This rise in home prices may have contributed to the marginal decrease in homeownership, as higher prices potentially made purchasing homes less affordable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Hazelwood. From 2014 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with relatively stable homeownership rates, hovering around 55-60%. However, as interest rates began to rise more sharply in 2022 to 1.68%, we observed a slight dip in homeownership to 56%, suggesting that higher borrowing costs may have impacted some potential buyers' ability to enter the market.
Renter occupancy in Hazelwood has seen a modest increase, rising from 40% in 2014 to 44% in 2022. This trend aligns with the slight decrease in homeownership rates. Interestingly, average rent prices have shown some volatility over this period. In 2014, the average rent was $972, which increased to $1,033 by 2021, but then decreased to $971 in 2022. This fluctuation in rent prices, coupled with the increasing home prices, may have influenced some residents to continue renting rather than transitioning to homeownership.
Looking at the most recent data, average home prices in Hazelwood continued to rise, reaching $155,945 in 2023 and $156,995 in 2024. This represents a 6.1% increase from 2022 to 2024. Concurrently, federal interest rates have climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with elevated home prices, may present challenges for potential homebuyers in the near future.
Applying predictive models to forecast trends over the next five years, we anticipate that average home prices in Hazelwood may continue to rise, albeit at a more moderate pace. Given the recent slowdown in price appreciation between 2023 and 2024, we might expect average home prices to reach approximately $170,000 to $180,000 by 2029. Average rent prices are likely to follow a similar trend, potentially increasing to around $1,100 to $1,200 per month by 2029, assuming steady economic growth and continued demand for rental properties in the area.
In summary, Hazelwood has experienced a gradual shift towards renting, with homeownership rates declining slightly as home prices have significantly increased. The interplay between federal interest rates, housing affordability, and local market conditions has shaped these trends. Moving forward, the city may continue to see moderate growth in both home prices and rent, although the pace of increase may be tempered by higher interest rates and economic factors.
