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Kirkwood, Missouri: Rising Home Values and Stable Ownership in a Historic Suburban City
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
Kirkwood, Missouri, a charming suburban city located in St. Louis County, boasts a rich history and a strong sense of community. Known for its excellent schools and picturesque downtown area, Kirkwood has maintained a relatively stable homeownership rate over the past decade, with a slight trend towards increased renting. The city has experienced steady growth in average home prices and fluctuating average rent prices during this period.
The homeownership rate in Kirkwood has seen a slight decline from 78% in 2013 to 77% in 2022. This trend coincides with a significant increase in average home prices, rising from $244,060 in 2013 to $399,978 in 2022, representing a 63.9% increase over nine years. The relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents, leading to a marginal shift towards renting.
Federal interest rates have played a role in shaping homeownership trends in Kirkwood. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which likely contributed to the relatively high homeownership rates during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership percentages. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in Kirkwood has increased slightly from 22% in 2013 to 23% in 2022. Average rent prices have fluctuated during this period, starting at $1,343 in 2013, peaking at $1,363 in 2015, and then settling at $1,371 in 2022. The modest increase in the renter population, despite the relatively stable average rent prices, may be attributed to the rising home prices making homeownership less attainable for some residents. Additionally, the growing population of Kirkwood, which increased from 25,983 in 2013 to 27,435 in 2022, may have contributed to a higher demand for rental properties.
In 2023 and 2024, Kirkwood's average home prices continued to rise, reaching $421,430 in 2023 and $432,186 in 2024. This represents a further 8% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, predictive models suggest that average home prices in Kirkwood are likely to continue their upward trajectory over the next five years, potentially reaching around $475,000 by 2029. This projection is based on the consistent growth observed in the past decade and the city's desirable location. Average rent prices are expected to follow a more moderate growth pattern, potentially increasing to approximately $1,500 by 2029, reflecting the balance between housing demand and the city's efforts to maintain affordability.
In summary, Kirkwood has experienced a slight shift towards renting, driven by substantial increases in average home prices and fluctuating interest rates. The city's growing population and desirable location continue to support a strong housing market, with both ownership and rental sectors showing resilience. As Kirkwood moves forward, balancing housing affordability with market demand will be crucial in maintaining its diverse and vibrant community.
