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McKinley Heights: Rising Home Values and Shifting Ownership Trends in St. Louis
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
McKinley Heights, a neighborhood in St. Louis, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in McKinley Heights has shown notable variability from 2013 to 2022. In 2013, the homeownership rate stood at 40%, and by 2022, it had slightly decreased to 39%. During this period, the average home prices in the neighborhood demonstrated an overall upward trend. In 2013, the average home price was $165,134, and by 2022, it had increased significantly to $264,566, representing a 60% rise over nine years.
The relationship between federal interest rates and homeownership rates in McKinley Heights shows some correlation. For instance, in 2013, when interest rates were at a low 0.11%, the homeownership rate was 40%. As interest rates gradually increased, reaching 1.68% in 2022, the homeownership rate slightly decreased to 39%. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in McKinley Heights have also shown interesting trends. In 2013, the renter-occupied percentage was 60%, with an average rent of $1,325. By 2022, the renter percentage had slightly increased to 61%, while the average rent had decreased to $1,183. This decrease in average rent, despite a slight increase in the renter population, could be attributed to various factors such as changes in housing supply or local economic conditions.
Looking at the most recent data, the average home price in McKinley Heights continued to rise in 2023 and 2024, reaching $271,766 and $273,405 respectively. This represents a 3.3% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the neighborhood.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in McKinley Heights, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices may see moderate increases as demand for rental properties could rise if homeownership becomes less affordable due to higher interest rates.
In summary, McKinley Heights has experienced a slight decrease in homeownership rates from 2013 to 2022, coupled with a significant increase in average home prices. The rental market has seen a marginal increase in the percentage of renters, while average rent prices have fluctuated. The recent sharp rise in interest rates, combined with steadily increasing home prices, may present challenges for potential homebuyers in the coming years, potentially shifting the balance further towards renting in this St. Louis neighborhood.
