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Malden, Missouri: Average Home Values and Ownership Trends in a Small Midwestern City
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
Malden, a city in Missouri, has experienced significant demographic and housing market changes over the past decade. This small Midwestern city has seen fluctuations in its homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The relationship between homeownership rates and average home prices in Malden shows some interesting patterns. In 2013, the homeownership rate was 56%, with an average home price of $66,320. By 2019, the homeownership rate had increased to 60%, coinciding with a rise in average home prices to $78,187. This suggests a positive correlation between homeownership and home values. However, this trend reversed in recent years, with homeownership dropping to 51% in 2022, despite average home prices reaching $84,294.
Federal interest rates have played a role in Malden's homeownership trends. The period from 2013 to 2015 saw relatively low interest rates (0.11% to 0.13%), which likely contributed to the steady homeownership rates around 56-57%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, we observed a decline in homeownership to 51%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Rental trends in Malden have shown volatility. In 2013, the renter-occupied percentage was 44%, with an average rent of $445. By 2016, the renter percentage increased to 47%, coinciding with a significant jump in average rent to $657. However, by 2019, the renter percentage decreased to 40%, while average rent dropped to $545. This suggests that higher rents may have pushed some residents towards homeownership during this period. In 2022, we see a sharp increase in both renter percentage (49%) and average rent ($702), possibly due to rising home prices making homeownership less attainable.
Looking at the most recent data, 2023 saw a slight decrease in average home prices to $82,326, while 2024 has experienced a more significant drop to $76,696. This decline coincides with a substantial increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates are likely contributing to the cooling of the housing market in Malden.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or slight decrease in average home prices, given the current high interest rate environment. Average rent prices may continue to rise moderately as more residents opt for renting due to less affordable homeownership options. However, if interest rates decrease in the future, we could see a resurgence in homeownership rates and a corresponding increase in home values.
In summary, Malden's housing market has shown sensitivity to both local economic conditions and broader financial trends. The inverse relationship between interest rates and homeownership rates is evident, as is the complex interplay between home prices, rent prices, and occupancy rates. The recent cooling of the housing market, coupled with high interest rates, suggests a potential shift towards a more balanced market in the coming years.
