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Iberia, Missouri: Rising Home Values and Ownership Rates in a Small Urban Center
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
Iberia, Missouri, is a small urban center with a population that has fluctuated over the years, reaching 992 residents in 2022. This city has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Iberia has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 60%, which increased significantly to 80% by 2018. However, there was a slight decrease to 77% in 2022. This trend aligns interestingly with the average home prices, which have seen a substantial increase over the years. In 2016, the average home price was $114,621, rising steadily to reach $184,980 by 2022, representing a 61% increase over six years.
The relationship between federal interest rates and homeownership rates in Iberia follows a generally inverse pattern. For instance, as interest rates remained low from 2013 to 2015 (around 0.1%), homeownership rates increased from 60% to 72% by 2016. The slight rise in interest rates to 1% in 2017 coincided with a continued increase in homeownership to 74%, possibly due to anticipation of future rate hikes encouraging home purchases.
Renter percentages in Iberia have shown a corresponding decrease as homeownership rates increased. In 2013, 40% of residents were renters, which dropped to 20% by 2018. However, there was a slight increase to 23% in 2022. Average rent prices have been volatile during this period. In 2013, the average rent was $553, which decreased to $458 in 2015 before rising again to $667 in 2018. By 2022, the average rent had decreased to $544, possibly influenced by the city's fluctuating population and changing housing market dynamics.
In 2023 and 2024, Iberia's housing market continued to evolve. The average home price rose to $193,109 in 2023 and further increased to $197,415 in 2024, showing a continued upward trend. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from previous years.
Looking ahead, predictive models suggest that average home prices in Iberia may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize or increase moderately, influenced by the balance between homeownership rates and rental demand.
In summary, Iberia has experienced a notable increase in homeownership rates and average home prices over the past decade. The inverse relationship between interest rates and homeownership has been evident, with low rates generally corresponding to higher ownership levels. The rental market has shown more volatility, both in terms of renter percentages and average rent prices. The recent sharp increase in interest rates may impact future homeownership trends and housing affordability in the city.
