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Home Values and Ownership Surge in Harrisburg, Missouri: A Decade of Housing Market Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Harrisburg, Missouri, a small community in Boone County covering just 0.8 square miles, has experienced significant changes in its housing market and demographic composition over the past decade. The trends in homeownership, average home prices, and average rent prices reveal an interesting story of Harrisburg's development.
Homeownership in Harrisburg has seen a remarkable increase from 2013 to 2022. The owner-occupied rate rose from 83% in 2013 to an impressive 95% by 2022. This trend coincided with a substantial increase in average home prices. In 2013, the average home price in Harrisburg was $163,789, which more than doubled to $359,093 by 2022. This 119% increase in average home prices over a decade indicates a strong demand for housing in the area.
The relationship between federal interest rates and homeownership rates in Harrisburg is noteworthy. Despite fluctuations in interest rates, homeownership continued to rise. For instance, when interest rates were at a low of 0.08% in 2021, homeownership was at 95%. This high rate of homeownership persisted even as interest rates climbed to 1.68% in 2022, suggesting that other factors, such as local economic conditions or housing availability, may have played a more significant role in driving homeownership than interest rates alone.
As homeownership increased, the percentage of renters in Harrisburg decreased correspondingly. In 2013, 17% of the population were renters, which dropped to just 5% by 2022. Interestingly, despite this decrease in renters, average rent prices showed an overall upward trend. The average rent price rose from $795 in 2013 to $837 in 2022, representing a 5.3% increase. This trend suggests that even with fewer renters, demand for rental properties remained strong enough to support rising prices.
Looking at the most recent data, the average home price in Harrisburg reached $367,805 in 2023, showing continued growth. However, in 2024, there was a slight decrease to $360,796. This recent dip coincides with a notable increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Harrisburg may experience moderate growth, albeit at a slower pace than the previous decade due to higher interest rates. Average rent prices are expected to continue their gradual upward trajectory, potentially reaching around $900 by 2029, assuming current economic conditions persist.
In summary, Harrisburg has experienced a remarkable increase in homeownership over the past decade, accompanied by significant growth in average home prices. The rental market, while shrinking in terms of population percentage, has maintained steady price growth. Recent data suggests a potential stabilization in the housing market, likely influenced by rising interest rates. These trends paint a picture of a community that has become increasingly focused on homeownership, with a robust and competitive housing market.
