Matthews, Missouri: Rising Home Values Amidst Population Decline
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Matthews, Missouri, is a small community that has experienced significant demographic and housing market changes over the past decade. The city has seen a general trend of decreasing population, fluctuating homeownership rates, and rising average home and rent prices. These trends provide insight into the evolving dynamics of Matthews's real estate market and community composition.
The homeownership rate in Matthews has shown moderate fluctuations over the years, with a general trend towards increased ownership. In 2013, the homeownership rate was 71%, which increased to 78% by 2017. However, it slightly declined to 73% in 2022. This trend has coincided with a substantial increase in average home prices. In 2011, the average home price was $44,346, which steadily rose to $113,964 by 2022, representing a remarkable 157% increase over 11 years.
Federal interest rates have played a significant role in shaping homeownership trends. From 2010 to 2015, interest rates remained extremely low, hovering around 0.1% to 0.18%. This period coincided with a rise in homeownership rates in Matthews, reaching 74% by 2015. As interest rates began to climb from 2016 onwards, homeownership rates stabilized, suggesting that higher borrowing costs may have impacted some potential buyers' ability to enter the market.
Renter percentages in Matthews have generally decreased as homeownership rates increased. In 2013, 29% of residents were renters, which declined to 22% by 2017. However, there was a slight uptick to 27% in 2022. Average rent prices have shown considerable volatility. In 2013, the average rent was $496, which decreased to $350 in 2015. Subsequently, rent prices rose significantly, reaching $685 in 2022, representing a 96% increase from the 2015 low. This trend occurred despite a declining population, which fell from 1,675 in 2010 to 1,137 in 2022, suggesting that other factors, such as housing supply constraints or improved rental property quality, may have influenced rent prices.
In 2023 and 2024, Matthews continued to see changes in its housing market. The average home price reached $116,993 in 2023, a new peak for the city. However, in 2024, there was a slight decrease to $113,954. This coincided 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 have contributed to the slight cooling in home prices observed in 2024.
Looking ahead, predictive models suggest that average home prices in Matthews may continue to rise moderately over the next five years, albeit at a slower pace than observed in the past decade. This projection takes into account the current higher interest rate environment, which could temper price growth. Average rent prices are also expected to increase, but potentially at a more stable rate, reflecting the balance between housing demand and the city's declining population trend.
In summary, Matthews has experienced a significant increase in homeownership rates and average home prices over the past decade, despite a declining population. The rental market has seen volatile price changes, with recent years showing substantial increases in average rents. The interplay between federal interest rates, population trends, and local economic factors will continue to shape the city's housing market dynamics in the coming years.
