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Lexington, Missouri: Rising Home Values and Shifting Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lexington, Missouri, a historic city in Lafayette County, has experienced notable changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in Lexington, providing insights into the city's evolving real estate landscape.
The homeownership rate in Lexington has shown a gradual decline from 2013 to 2022. In 2013, 73% of housing units were owner-occupied, but this figure decreased to 66% by 2022. Simultaneously, average home prices have experienced substantial growth. In 2012, the average home price was $70,191, which increased steadily to reach $166,199 by 2022, representing a remarkable 137% increase over this period.
The relationship between federal interest rates and homeownership rates in Lexington appears to follow established trends. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates initially remained stable. However, despite these low rates, homeownership still declined slightly, suggesting other factors were influencing this trend. The slight increase in homeownership from 65% in 2020 to 66% in 2022 coincided with a rise in interest rates to 1.68% in 2022, which is contrary to typical expectations and may indicate local market-specific factors at play.
The percentage of renters in Lexington has increased from 27% in 2013 to 34% in 2022. This trend has been accompanied by a significant rise in average rent prices. In 2013, the average rent was $586, which increased to $842 by 2022, representing a 44% increase. It's worth noting that the population of Lexington fluctuated during this period, reaching 5,858 in 2022, which may have influenced rental demand and prices.
In 2023 and 2024, Lexington's housing market continued to evolve. The average home price rose to $173,771 in 2023 and further increased to $179,089 in 2024, showing a continuing upward trend. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for Lexington's housing market over the next five years. Average home prices could continue their upward trajectory, potentially reaching around $200,000 to $220,000 by 2029. Average rent prices might also continue to rise, possibly reaching $900 to $950 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Lexington has experienced a shift towards a higher proportion of renters, accompanied by significant increases in both average home prices and rent prices over the past decade. The city's housing market has shown resilience and growth, with recent years marking continued appreciation in home values despite rising interest rates. These trends suggest a dynamic real estate environment in Lexington, with potential for further growth and changes in the coming years.
