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Lohman, Missouri: Rising Home Values Amidst Shifting Ownership Trends
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
Lohman, located in Missouri, is a small but dynamic community that has experienced notable changes in its housing market over the past decade. This city has maintained a strong preference for homeownership, with a gradual shift towards increased renting in recent years. The trends in average home prices and average rent have shown overall growth, reflecting the city's evolving real estate landscape.
The homeownership rate in Lohman has seen a slight decline from 2013 to 2022, moving from 91% to 85%. This trend coincides with a significant increase in average home prices. In 2012, the average home price was $191,752, rising steadily to reach $337,247 by 2022, representing a 75.9% increase over a decade. Despite this substantial growth in home values, the high rate of homeownership suggests that Lohman residents have generally been able to maintain their status as homeowners, though with a slight decrease in recent years.
Federal interest rates have played a role in shaping homeownership trends in Lohman. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable at around 89-91%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observe a corresponding decrease in homeownership to 85%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in Lohman has shown a gradual increase, rising from 9% in 2013 to 15% in 2022. This trend has been accompanied by fluctuations in average rent prices. The average rent increased from $492 in 2013 to $682 in 2022, representing a 38.6% rise. However, this growth was not linear, with some years showing decreases in average rent. For instance, the average rent dropped from $621 in 2015 to $606 in 2016, and from $667 in 2018 to $596 in 2019. These fluctuations could be attributed to changes in local economic conditions or housing supply.
In 2023 and 2024, Lohman's housing market continued its upward trajectory. The average home price reached $352,546 in 2023 and further increased to $366,716 in 2024, marking a 4.6% and 4% year-over-year growth respectively. This growth occurred despite rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, suggesting a robust local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, predictive models suggest that the average home prices in Lohman will continue to rise over the next five years, albeit at a potentially slower pace due to the higher interest rate environment. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand. However, the rate of increase may moderate as the market adjusts to economic conditions and potential changes in housing supply.
In summary, Lohman's housing market has demonstrated strong growth in both average home prices and average rent over the past decade. While homeownership remains predominant, there's a gradual shift towards more renting. The interplay between federal interest rates, housing prices, and ownership rates highlights the complex dynamics of the local real estate market. As the city moves forward, it will likely continue to see evolving trends in housing affordability and occupancy patterns.
