Houston, Missouri, a small city in Texas County with a population of 4,206 in 2022, has experienced significant changes in its real estate market over the past decade. Spanning 3.64 square miles, this compact community has seen fluctuations in homeownership rates and substantial increases in housing prices. The homeownership rate in Houston has followed an interesting pattern, decreasing from 75% in 2013 to a low of 61% in 2019, before recovering to 71% in 2022. This trend coincides with notable changes in average home prices, which have nearly doubled from $81,936 in 2011 to $155,615 in 2022, representing a 90% increase over 11 years.

Federal interest rates appear to have played a role in Houston's homeownership rates. The period of low interest rates from 2011 to 2015, ranging from 0.10% to 0.13%, corresponded with relatively high homeownership rates. However, as interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates declined. Interestingly, the recent increase in homeownership from 2020 to 2022 occurred despite rising interest rates, suggesting that other local factors may be influencing the market.

The rental market in Houston has inversely reflected the homeownership trends. The percentage of renters increased from 25% in 2013 to a peak of 39% in 2019, before decreasing to 29% in 2022. Average rent prices have shown volatility, reaching a high of $815 in 2014, then declining to $629 in 2019, and rising again to $675 in 2022. This represents a 17% decrease in average rent from the 2014 peak to 2022, despite the overall increase in housing prices.