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Home Values and Ownership in Sturgeon, Missouri: A Decade of Housing Market Transformation
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
Sturgeon, Missouri, a small but growing community, has experienced significant changes in its housing market over the past decade. The city has seen a notable shift in homeownership rates, coupled with substantial increases in both average home prices and average rent prices. These trends reflect broader economic and demographic changes in the area. From 2013 to 2022, Sturgeon experienced a marked decline in homeownership rates. In 2013, 76% of residents owned their homes, but by 2022, this figure had dropped to 56%. Concurrently, average home prices in the city rose dramatically. In 2013, the average home price was $114,766, but by 2022, it had skyrocketed to $285,489, representing a 148.8% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for many residents.
The federal interest rate trends appear to have influenced homeownership rates in Sturgeon. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 70%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more sharply, falling to 56% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in Sturgeon increased from 24% in 2013 to 43% in 2022. During this period, average rent prices also saw a significant uptick. In 2013, the average rent was $316, but by 2022, it had risen to $842, representing a 166.5% increase. This rise in rent prices coincided with a population increase from 897 in 2013 to 1,164 in 2022, suggesting that growing demand for rental properties may have contributed to the price surge.
In 2023 and 2024, Sturgeon's housing market continued to evolve. The average home price reached $298,752 in 2023 and further increased to $300,649 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, based on the observed trends, it's projected that average home prices in Sturgeon will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $330,000 by 2029. Similarly, average rent prices are expected to increase, potentially reaching around $1,000 per month by 2029, driven by continued population growth and demand for rental properties.
In summary, Sturgeon has experienced a significant shift from homeownership to renting, accompanied by substantial increases in both home prices and rent. These trends appear to be influenced by population growth, rising property values, and changes in interest rates. The city's housing market continues to evolve, with both opportunities and challenges for residents and potential homebuyers.
