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Linn, Missouri: Rising Home Values and Ownership Rates Amidst Market Volatility
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
Linn, Missouri, a small community with a population of 5,435 as of 2022, has experienced significant changes in its housing market over the past decade. Located in the heart of the state, this growing city has seen notable trends in homeownership, average home prices, and rent prices that reflect its economic development and demographic shifts.
Homeownership in Linn has shown a general upward trend, increasing from 73% in 2013 to 77% in 2022. This rise coincided with a substantial increase in average home prices, which grew from $116,712 in 2012 to $213,043 in 2022, representing an 82.5% increase over a decade. This significant growth in home values likely contributed to wealth accumulation for homeowners in the area.
The relationship between federal interest rates and homeownership rates in Linn appears to follow the general economic principle that lower interest rates tend to encourage homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate in Linn reached its peak at 79% in 2021. This correlation suggests that favorable financing conditions played a role in promoting homeownership in the city.
Conversely, the percentage of renters in Linn has shown a slight decline over the years, from 27% in 2013 to 23% in 2022. Despite this decrease, average rent prices have experienced fluctuations. In 2013, the average rent was $510, which decreased to $464 in 2016 before rising again to $522 in 2022. These fluctuations in rent prices, coupled with the decreasing renter population, suggest a complex rental market influenced by factors such as housing supply, local economic conditions, and possibly the conversion of rental properties to owner-occupied homes.
Looking at the most recent data, the average home price in Linn continued its upward trajectory, reaching $228,627 in 2023 and $240,437 in 2024. This represents a 12.9% increase from 2022 to 2024. Simultaneously, 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 and housing affordability in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Linn will continue to rise, potentially reaching around $280,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of around $600 per month by 2029, considering the historical fluctuations and recent upward trend.
In summary, Linn has experienced a notable increase in homeownership rates and average home prices over the past decade, with a corresponding slight decrease in the renter population. The city's housing market has shown resilience and growth, with average home prices more than doubling since 2012. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As Linn continues to evolve, these trends will likely play a crucial role in shaping its housing landscape and community development in the coming years.
