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Manchester, Missouri: Steady Homeownership Amidst Rising Property Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Manchester, Missouri, a suburban city in St. Louis County, has experienced significant changes in its housing market over the past decade. With a population of 21,499 in 2022 and an area of 5.03 square miles, the city has shown interesting trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Manchester has remained relatively stable, around 75% from 2013 to 2022. However, a slight decline occurred in recent years, dropping from 76% in 2019 to 74% in 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $197,104, which steadily rose to $325,920 by 2022, representing a 65.4% increase over this period.
The relationship between federal interest rates and homeownership rates in Manchester shows some correlation. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.4%), homeownership rates remained steady at 75%. As interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly to 76%. However, the recent decline in homeownership to 74% in 2022 coincided with a significant jump in interest rates to 1.68%, suggesting that rising rates may be starting to impact affordability and homeownership.
Renter percentages in Manchester have shown a slight upward trend, increasing from 23% in 2015 to 26% in 2022. This trend has been accompanied by a steady rise in average rent prices. In 2013, the average rent was $1,236, which increased to $1,415 by 2022, representing a 14.5% increase. The growth in both renter percentages and rent prices could be attributed to the rising home prices, which may be pushing more residents towards renting.
In 2023 and 2024, the housing market in Manchester continued to evolve. The average home price reached $341,623 in 2023 and further increased to $352,866 in 2024, showing a continued upward trend. Simultaneously, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability.
Looking ahead, based on the historical trends and current market conditions, average home prices in Manchester are expected to continue rising, albeit potentially at a slower rate due to higher interest rates. A 5-year forecast suggests average home prices could reach approximately $400,000 by 2029. Average rent prices are also likely to continue their upward trajectory, potentially reaching around $1,600 by 2029, assuming the current trend persists.
In summary, Manchester has experienced a robust increase in average home prices over the past decade, with a slight decline in homeownership rates in recent years. The rental market has seen moderate growth in both renter percentages and average rent prices. The interplay between rising home prices, increasing interest rates, and shifts in homeownership versus renting patterns will likely continue to shape Manchester's housing market in the coming years.
