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Lathrop, Missouri: A Decade of Rising Home Values and Strong Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lathrop, a small city in Missouri, has experienced notable fluctuations in its housing market over the past decade. The city has maintained a strong homeownership rate, with average home prices steadily increasing and average rent prices showing variability. This analysis will explore the intricate relationship between homeownership rates, housing prices, and rental trends in Lathrop.
The homeownership rate in Lathrop has shown resilience, ranging from 72% to 80% between 2013 and 2022. This high rate of homeownership coincides with a consistent upward trend in average home prices. In 2011, the average home price in Lathrop was $126,621. By 2022, this figure had nearly doubled to $250,024, representing a significant 97.5% increase over 11 years. The most substantial year-over-year growth occurred between 2020 and 2021, with average home prices jumping from $189,138 to $220,894, a 16.8% increase.
Federal interest rates have played a crucial role in shaping homeownership trends in Lathrop. The period from 2011 to 2015 saw historically low interest rates, hovering between 0.1% and 0.13%. During this time, homeownership rates remained relatively stable, ranging from 73% to 75%. As interest rates began to rise gradually from 2016 onwards, reaching 2.16% in 2019, homeownership rates actually increased, peaking at 79% in 2019 and 2020. This suggests that other local factors may have influenced homeownership decisions in Lathrop, possibly including job market stability or local economic conditions.
Rental trends in Lathrop have shown interesting patterns in relation to the city's homeownership rates. The percentage of renters fluctuated between 20% and 28% from 2013 to 2022. Average rent prices have generally increased over this period, albeit with some volatility. In 2013, the average rent was $763, which rose to $1,068 by 2022, representing a 40% increase. Notably, there was a significant jump in average rent from $703 in 2017 to $962 in 2018, a 36.8% increase in a single year. This spike coincided with a slight decrease in the renter percentage from 23% to 26%, suggesting that higher rents may have encouraged some residents to transition to homeownership.
The most recent data from 2023 and 2024 shows a continued upward trend in average home prices in Lathrop. In 2023, the average home price reached $259,974, and by 2024, it further increased to $265,348. This represents a 2.1% year-over-year increase. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in Lathrop, potentially making mortgages less affordable for some prospective buyers.
Looking ahead, predictive models suggest that average home prices in Lathrop are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area. However, the rate of increase may moderate as the market adjusts to economic conditions and local housing supply dynamics.
In summary, Lathrop's housing market has demonstrated strong growth in both homeownership rates and average home prices over the past decade. The city has maintained a high percentage of homeowners despite rising property values, indicating a robust local real estate market. Rental trends have shown more variability, with significant fluctuations in average rent prices. As Lathrop moves forward, the interplay between interest rates, housing affordability, and local economic factors will continue to shape its residential landscape.
