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Lake St. Louis, Missouri: Rising Home Values and Stable Ownership in a Growing Suburban Community
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
Lake St. Louis, Missouri, is a vibrant city located in St. Charles County. This suburban community has experienced significant growth over the past decade, with its population increasing from 21,661 in 2010 to 31,144 in 2022. The city has maintained a high rate of homeownership throughout this period, with a slight fluctuation in the ownership percentage. Average home prices have shown a steady upward trend, while average rent prices have experienced some volatility.
The homeownership rate in Lake St. Louis has remained consistently high, ranging from 80% to 85% between 2013 and 2022. This stability in homeownership coincides with a substantial increase in average home prices. In 2010, the average home price was $227,036, which rose to $395,292 by 2022, representing a 74% increase over 12 years. Despite this significant price appreciation, the homeownership rate has remained relatively stable, suggesting a strong desire for homeownership in the community and possibly indicating a robust local economy.
Federal interest rates have played a role in homeownership trends in Lake St. Louis. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to maintaining the high homeownership rates in the city by making mortgages more affordable. For instance, in 2013, when the interest rate was 0.11%, the homeownership rate was 84%. The rate remained at 84% in 2022, even as interest rates increased to 1.68%, demonstrating the resilience of homeownership in Lake St. Louis.
Renter percentages in Lake St. Louis have fluctuated slightly, ranging from 15% to 20% between 2013 and 2022. Interestingly, average rent prices have shown a downward trend in recent years, despite the growing population. In 2013, the average rent was $1,309, which peaked at $1,333 in 2014 before gradually declining to $1,077 in 2022. This decrease in average rent prices, coupled with a growing population, suggests that the rental market in Lake St. Louis may be becoming more competitive or that new rental properties are entering the market at lower price points.
As of 2024, the average home price in Lake St. Louis has reached $410,344, continuing the upward trend observed in previous years. This represents a 3.8% increase from the 2022 average of $395,292. The federal interest rate in 2024 stands at 5.33%, which is significantly higher than the rates seen in the previous decade. Despite this increase in interest rates, the housing market in Lake St. Louis appears to remain strong, with home prices continuing to appreciate.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Lake St. Louis will likely continue to increase over the next five years, albeit potentially at a more moderate pace due to higher interest rates. If the current trend continues, average home prices could reach approximately $475,000 by 2029. For average rent prices, the trend is less clear due to recent fluctuations. However, if the slight downward trend reverses and aligns with population growth, we might see average rents stabilize or increase modestly, potentially reaching around $1,200 by 2029.
In summary, Lake St. Louis has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The city has maintained its appeal to homeowners despite significant price appreciation, possibly due to its desirable suburban location and local economic factors. The rental market has shown interesting dynamics, with decreasing average rents despite population growth. As the city continues to evolve, it will be crucial to monitor how these housing trends impact the overall community and local economy.
