Loading Content...
JeffVanderLou: Fluctuating Home Values and Ownership Trends in a St. Louis Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
JeffVanderLou, a neighborhood in St. Louis, Missouri, has experienced notable changes in its housing market over the past decade. This urban area has predominantly been renter-occupied, with gradual increases in average home prices and rent costs. The interplay between homeownership rates, property values, and rental market dynamics has shaped the neighborhood's housing landscape.
The homeownership rate in JeffVanderLou showed a slight upward trend from 2013 to 2021, increasing from 25% to 31%. However, in 2022, there was a notable decrease to 26%. During this period, average home prices demonstrated overall growth. In 2016, the average home price was $56,019, which rose to $82,995 by 2022, representing a 48% increase over six years. This upward trend in home prices, despite the recent dip in homeownership, suggests a complex interplay of factors affecting the local real estate market.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership in JeffVanderLou increased from 25% to 30%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the relationship is not always direct, as evidenced by the continued stability in homeownership rates from 2016 to 2021, even as interest rates fluctuated.
The renter population in JeffVanderLou has consistently been the majority, ranging from 69% to 75% between 2013 and 2022. Average rent prices have shown a steady increase over this period. In 2013, the average rent was $578, which rose to $694 by 2022, marking a 20% increase. This upward trend in rent prices occurred despite fluctuations in the neighborhood's population, which varied from a low of 4,861 in 2018 to a high of 5,957 in 2014.
Looking at the most recent data, 2023 saw a significant drop in average home prices to $67,413, a decrease of about 19% from 2022. This trend continued into 2024, with average home prices slightly increasing to $67,445. Interestingly, these price decreases occurred while federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially influencing buyer behavior and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or modest increase in average home prices, assuming economic conditions remain relatively stable. Rent prices are likely to continue their upward trajectory, albeit at a potentially slower rate, reflecting the ongoing demand for rental properties in the area.
In summary, JeffVanderLou has experienced a complex interplay of homeownership rates, property values, and rental market dynamics. The neighborhood has maintained a predominantly renter-occupied status, with gradual increases in both home and rent prices over the past decade. Recent data shows a significant correction in home prices, coupled with rising interest rates, suggesting a period of market adjustment. These trends underscore the dynamic nature of the local real estate market and the influence of broader economic factors on housing in this St. Louis neighborhood.
