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Ironton, Missouri: Rising Home Values and Ownership Amidst Population Decline
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
Ironton, Missouri, a small city in Iron County with a rich history in iron mining, has experienced significant changes in its housing market over the past decade. The community has seen a notable increase in homeownership rates alongside rising home and rent prices, indicating a transforming housing landscape. From 2013 to 2022, Ironton's homeownership rate increased substantially, rising from 61% to 76%. This 15 percentage point increase coincided with a significant rise in average home prices. In 2015, the average home price was $58,417, which grew to $111,370 by 2022, representing a 90.6% increase over seven years. This trend suggests that despite rising home prices, more Ironton residents are choosing homeownership.
The relationship between federal interest rates and homeownership rates in Ironton presents an interesting pattern. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%, during which homeownership rates increased from 61% to 70%. This aligns with the general trend that lower interest rates encourage homeownership due to more affordable financing options. However, it's noteworthy that homeownership continued to increase in 2021 and 2022, reaching 76%, despite a rise in interest rates to 1.68% in 2022.
The percentage of renters in Ironton has decreased over time, from 39% in 2013 to 24% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. In 2013, the average rent was $524, which increased to $642 by 2022, representing a 22.5% increase. This rise in rent prices, coupled with the decreasing renter population, suggests a tightening rental market in Ironton.
Recent data shows that the average home price in Ironton reached $114,564 in 2023 and further increased to $114,984 in 2024, representing a modest growth of 0.37% from 2023 to 2024. Simultaneously, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since 2007. These higher interest rates could potentially impact homeownership trends and housing affordability in the coming years.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Ironton will continue to rise, albeit at a more moderate pace. Given the historical data and current economic conditions, projections suggest average home prices could reach approximately $125,000 to $130,000 by 2029. For average rent prices, the forecast indicates a continued upward trend, potentially reaching around $700 to $725 per month by 2029.
In summary, Ironton has experienced a significant increase in homeownership rates over the past decade, accompanied by substantial growth in average home prices. The rental market has seen a decrease in the percentage of renters, yet average rent prices have continued to rise. Recent data shows a continuation of these trends, with home prices reaching new highs and interest rates increasing substantially. These dynamics suggest a transforming housing market in Ironton, with potential implications for affordability and accessibility in the coming years.
