Loading Content...
Kingston, Missouri: Tripling Home Values and Record Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Kingston, Missouri, is a small urban center that has experienced notable fluctuations in population and housing dynamics over the past decade. The city has seen significant shifts in homeownership rates and property values, reflecting broader economic trends and local market conditions. This analysis will explore the interplay between homeownership, rental markets, and housing prices in Kingston.
From 2013 to 2022, Kingston witnessed a substantial increase in homeownership rates, rising from 65% to 84%. This trend coincided with a remarkable surge in average home prices, which more than tripled from $86,873 in 2013 to $244,525 in 2022. The relationship between homeownership and home prices appears to be positively correlated, suggesting that as property values increased, more residents were motivated or able to purchase homes.
The federal interest rate trends have played a significant role in shaping homeownership patterns in Kingston. From 2013 to 2020, interest rates remained historically low, hovering between 0.08% and 2.16%. This period of low-cost borrowing likely contributed to the steady increase in homeownership, reaching a peak of 75% in 2016. As interest rates began to rise more sharply in 2022, reaching 1.68%, the homeownership rate surprisingly continued to climb, reaching its highest point of 84% that year.
Conversely, the rental market in Kingston has shown an inverse relationship to homeownership trends. The percentage of renters decreased from 35% in 2013 to 16% in 2022. Despite this decline, average rent prices have been volatile. They peaked at $815 in 2015 when the renter population was 26%, then dropped to $686 in 2017 and 2018 as the renter population slightly increased. By 2022, average rent had fallen to $590, coinciding with the lowest renter percentage of 16%.
In 2023 and 2024, Kingston continued to see growth in average home prices, reaching $252,982 in 2023 and $262,328 in 2024. This upward trajectory occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically be expected to cool the housing market, but Kingston's property values have shown resilience in the face of these economic headwinds.
Looking ahead to the next five years, predictive models suggest that average home prices in Kingston may continue to rise, albeit at a more moderate pace. If current trends persist, average home prices could potentially reach around $300,000 by 2029. Rent prices, which have been more volatile, may stabilize or see modest increases as the rental market adjusts to the smaller renter population and potential economic changes.
In summary, Kingston has experienced a significant shift towards homeownership, with property values showing strong appreciation over the past decade. The inverse relationship between homeownership and rental rates, coupled with the resilience of home prices in the face of rising interest rates, suggests a robust local housing market. As the city moves forward, it will be crucial to monitor how these trends evolve, particularly in response to broader economic conditions and demographic shifts.
