Loading Content...
Home Values and Ownership in St. Joseph, Missouri: A Pony Express City's Housing Market Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
St. Joseph, Missouri, a city with a rich history dating back to the Pony Express era, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This analysis will explore the trends in ownership percentages, average home prices, and average rent prices, providing insights into the city's housing market dynamics. The homeownership rate in St. Joseph has shown considerable variability from 2013 to 2022. In 2013, 57% of housing units were owner-occupied. This figure peaked at 63% in 2015 before declining to 54% in 2019. By 2022, the homeownership rate recovered to 61%. Simultaneously, average home prices in St. Joseph have demonstrated a general upward trend. In 2013, the average home price was $107,759. This figure remained relatively stable until 2019 when it began a sharp ascent, reaching $146,464 by 2022, representing a 36% increase over this period.
The relationship between federal interest rates and homeownership rates in St. Joseph shows some correlation. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%) coincided with generally higher homeownership rates, peaking at 63% in 2015. As interest rates began to rise more significantly from 2017 onwards, there was some fluctuation in homeownership rates, though they remained relatively high, suggesting other local factors may have influenced homeownership decisions.
Renter percentages in St. Joseph have inversely mirrored homeownership rates, ranging from a low of 37% in 2015 to a high of 46% in 2019. Average rent prices have shown an overall increasing trend, albeit with some fluctuations. In 2013, the average rent was $731 per month. This figure dipped to $682 in 2016 before steadily climbing to $800 by 2022, marking a 9.4% increase from 2013 to 2022. The rise in rent prices, coupled with the city's relatively stable population during this period, suggests increasing demand for rental properties or improvements in rental stock quality.
In 2023 and 2024, St. Joseph's housing market continued its upward trajectory. The average home price reached $151,023 in 2023 and further increased to $154,995 in 2024, representing a 5.8% growth over two years. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local market fundamentals overriding national financing trends.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to surpass $170,000 by 2029, while average rent prices could approach $900 per month. These predictions are based on the historical trends and assume relatively stable economic conditions.
In summary, St. Joseph's housing market has demonstrated resilience and growth, particularly in recent years. The city has maintained a relatively high homeownership rate despite fluctuations, while both home prices and rent prices have shown consistent upward trends. The market's ability to sustain price growth even in the face of rising interest rates suggests a robust local economy and continued demand for housing in the area. As the city moves forward, balancing affordability with market growth will likely be a key consideration for policymakers and residents alike.
