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Liberty's Housing Market: Steady Ownership Amidst Rising Values
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
Liberty, Missouri, is a vibrant community located in Clay County, with a population of 36,963 as of 2022. The city, spanning 28.96 square miles, has experienced significant changes in homeownership rates and housing prices over the past decade. Liberty has maintained a relatively stable homeownership rate while seeing substantial increases in both average home prices and average rent prices. The homeownership rate in Liberty has remained relatively steady, with a slight decline from 80% in 2013 to 77% in 2022. During this same period, average home prices have shown a remarkable upward trend. In 2013, the average home price in Liberty was $150,968. By 2022, this figure had nearly doubled to $291,170, representing a 93% increase over nine years. This substantial rise in home prices, despite a relatively stable homeownership rate, suggests that Liberty has remained an attractive market for homeowners, even as properties have become more expensive.
Federal interest rates have played a significant role in shaping homeownership trends in Liberty. From 2013 to 2016, interest rates remained exceptionally low, ranging from 0.11% to 0.40%. During this period, the homeownership rate in Liberty held steady at around 77-78%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate in Liberty remained stable at 77%. This stability in homeownership, despite rising interest rates, indicates a strong desire for homeownership in the community and potentially reflects the city's economic resilience.
The renter population in Liberty has seen a slight increase, from 19% in 2013 to 23% in 2022. This gradual rise in the renter population has been accompanied by a steady increase in average rent prices. In 2013, the average rent in Liberty was $1,012. By 2022, it had risen to $1,082, an increase of about 7% over nine years. This relatively modest increase in rent prices, compared to the more substantial rise in home prices, may have contributed to the slight growth in the renter population.
Looking at the most recent data, the average home price in Liberty reached $305,561 in 2023 and further increased to $313,973 in 2024. This represents a continued upward trend in home values. 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 rates and housing market dynamics in Liberty.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Liberty will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $350,000 to $375,000. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month by 2029, assuming current trends continue.
In summary, Liberty has demonstrated a robust housing market with steadily increasing home values and a stable homeownership rate. The slight increase in the renter population, coupled with moderate rent price increases, suggests a balanced and dynamic housing ecosystem. The city's ability to maintain high homeownership rates despite rising home prices indicates strong local economic conditions and a continued desire for homeownership among residents. As Liberty moves forward, it will be crucial to monitor how the recent sharp increases in interest rates affect the housing market and homeownership trends in the coming years.
