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Mansfield, Missouri: Home Values Soar as Ownership Rates Fluctuate in Dynamic Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Mansfield, Missouri, a small city located in the heart of the Ozarks, has experienced interesting shifts in its housing market over the past decade. The city, known for its scenic beauty and close-knit community, has seen fluctuations in homeownership rates and property values that reflect broader economic trends and local dynamics.
The homeownership rate in Mansfield has shown a notable increase in recent years, rising from 60% in 2017 to 74% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2016, the average home price in Mansfield was $111,559. By 2022, this figure had surged to $192,509, representing a substantial 72.6% increase over six years. This parallel growth suggests a strong correlation between rising property values and the increasing preference for homeownership among Mansfield residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Mansfield. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%. This favorable lending environment likely contributed to the increase in homeownership, as lower rates made mortgages more accessible and affordable for potential buyers. The sharp rise in homeownership from 65% in 2016 to 74% in 2022 aligns with this period of low interest rates, demonstrating the impact of federal monetary policy on local housing markets.
Conversely, the rental market in Mansfield has experienced fluctuations. The percentage of renters decreased from 40% in 2017 to 26% in 2022. Despite this decline in the renter population, average rent prices have shown moderate growth. In 2013, the average rent was $543, which increased to $516 by 2022. This modest rise in rent prices, despite the decreasing renter population, could be attributed to factors such as improved rental property quality or a shift towards more premium rental options in the city.
The years 2023 and 2024 have brought new developments to Mansfield's housing market. In 2023, the average home price reached $198,777, marking a new peak. However, 2024 has seen a slight correction, with average home prices decreasing to $188,006. This recent dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be cooling the housing market, making mortgages less affordable and potentially slowing the pace of home purchases.
Looking ahead, predictive models suggest a continued but moderate growth in both home prices and rent over the next five years. Average home prices are expected to increase by approximately 3-4% annually, potentially reaching around $220,000 by 2029. Rent prices are forecasted to grow at a similar rate, potentially reaching an average of $580-$600 per month in the same timeframe. These projections assume stable economic conditions and gradual population growth in Mansfield.
In summary, Mansfield has experienced a robust increase in homeownership and property values over the past decade, driven by favorable interest rates and local economic factors. The recent uptick in interest rates may lead to a more balanced housing market in the coming years. The city's housing trends reflect a dynamic interplay between federal policies, local economic conditions, and changing resident preferences, positioning Mansfield as an evolving and potentially attractive market for both homeowners and investors.
