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Humansville, Missouri: Rising Home Values and Declining Ownership Rates
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
Humansville, Missouri, a small city in Polk County, has experienced significant changes in its housing market over the past decade. This charming community has seen a notable shift in homeownership rates and property values, reflecting broader economic trends and local dynamics. The city's real estate landscape has been characterized by decreasing homeownership rates coupled with substantial growth in average home prices.
Homeownership rates in Humansville have declined markedly since 2013. In that year, the city boasted a high 78% homeownership rate. However, by 2022, this figure had dropped to 66%, representing a 12 percentage point decrease. This decline in homeownership coincided with a substantial increase in average home prices. In 2012, the average home price in Humansville was $59,754. By 2022, this figure had risen dramatically to $159,231, marking a remarkable 166% increase over a decade.
The relationship between federal interest rates and homeownership rates in Humansville follows a generally expected pattern. In 2013, when homeownership was at its peak of 78%, the federal interest rate was a low 0.11%. As interest rates began to rise, particularly from 2016 onwards, homeownership rates showed a downward trend. By 2022, with interest rates at 1.68%, homeownership had decreased to 66%. This inverse relationship suggests that higher interest rates may have contributed to making homeownership less affordable for Humansville residents.
Renter percentages in Humansville have naturally increased as homeownership rates declined. In 2013, only 22% of residents were renters. By 2022, this figure had risen to 34%, representing a 12 percentage point increase. Average rent prices have also shown an upward trend, albeit with some fluctuations. In 2013, the average rent was $569 per month. This figure peaked at $738 in 2016 before settling at $623 in 2022. The population growth from 1,980 in 2013 to 2,466 in 2022 likely contributed to the increased demand for rental properties and the overall rise in rent prices.
Looking at the most recent data, the average home price in Humansville reached $160,700 in 2023 and further increased to $168,107 in 2024. This represents a steady upward trend in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Humansville will continue to rise, potentially reaching around $200,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are also expected to increase, potentially surpassing $750 per month within the next five years, driven by population growth and the ongoing shift towards renting.
In summary, Humansville has experienced a significant shift in its housing market dynamics over the past decade. The decline in homeownership rates, coupled with rapidly increasing home prices, suggests a changing landscape for residents. The inverse relationship between interest rates and homeownership rates highlights the impact of broader economic factors on local housing trends. As the city continues to grow, it will be crucial to monitor these trends and their implications for both homeowners and renters in Humansville.
