Loading Content...
Historic Old Southwest: Rising Home Values and Fluctuating Ownership in Columbia, Missouri
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Historic Old Southwest, a charming neighborhood in Columbia, Missouri, has experienced significant fluctuations in homeownership rates and housing prices over the past decade. This area, known for its rich history and distinctive character, has seen a general trend of increasing average home prices, while homeownership rates and average rent prices have shown more variability. These changes reflect the dynamic nature of the local housing market and broader economic factors.
The relationship between homeownership rates and average home prices in Historic Old Southwest has been complex. In 2013, the neighborhood had a high homeownership rate of 91%, with an average home price of $241,411. As average home prices steadily increased to $303,522 by 2020, the homeownership rate declined to 66%. However, this trend reversed in recent years, with homeownership rising to 87% in 2022 despite average home prices reaching $387,793. This suggests that factors beyond just home prices influence homeownership rates in the area.
Federal interest rates have played a role in homeownership trends. When interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership in the neighborhood increased from 66% to 85%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the continued rise in homeownership to 87% in 2022, despite interest rates increasing to 1.68%, indicates that other local factors may be influencing homeownership decisions in Historic Old Southwest.
Renter percentages and average rent prices have shown an interesting relationship. In 2013, with only 9% of residents renting, the average rent was $597. As the renter population grew to 33% by 2020, average rent prices increased significantly, reaching $1,236. However, in 2022, despite a decrease in the renter population to 13%, average rent remained relatively high at $1,220. This suggests that factors such as housing quality improvements or broader market conditions may be keeping rent prices elevated even as demand fluctuates.
As of 2024, the average home price in Historic Old Southwest has reached $419,040, continuing the upward trend observed in previous years. This represents a substantial increase from the 2023 average of $408,567. Notably, federal interest rates have also risen significantly, standing at 5.33% in 2024, up from 5.02% in 2023. These higher interest rates may impact future homeownership trends and affordability in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Historic Old Southwest are likely to continue their upward trajectory over the next five years, potentially reaching around $500,000 by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace, possibly reaching approximately $1,400 per month in the same timeframe. These projections assume continued economic stability and sustained demand for housing in the area.
In summary, Historic Old Southwest has demonstrated resilience in its housing market, with increasing average home prices and a recent rebound in homeownership rates despite rising interest rates. The neighborhood has experienced significant fluctuations in renter populations and average rent prices, reflecting its dynamic nature. As the area continues to evolve, balancing affordability with the neighborhood's desirability will likely be a key challenge for residents and policymakers alike.
