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Mehlville, Missouri: Stable Homeownership Amidst Rising Home Values
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
Mehlville, Missouri, a suburban community in St. Louis County, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home values, and rental prices from 2013 to 2024. Mehlville's housing landscape has shown a gradual shift towards renting, accompanied by substantial increases in both home and rental prices.
The homeownership rate in Mehlville has seen a slight decline from 66% in 2013 to 64% in 2022. This change coincided with a remarkable increase in average home prices, which rose from $132,629 in 2013 to $218,383 in 2022, representing a 64.7% increase over nine years. The substantial rise in home prices may have contributed to the decrease in homeownership, as higher prices can make purchasing a home more challenging for some residents.
The relationship between federal interest rates and homeownership rates in Mehlville shows an interesting pattern. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates declined slightly from 66% to 64%. As interest rates began to rise more significantly from 2016 onwards, homeownership rates stabilized at around 64-65%. This suggests that while low interest rates can make mortgages more affordable, other factors such as rising home prices may have counteracted this effect in Mehlville.
Renter percentages in Mehlville have shown a slight increase, rising from 34% in 2013 to 36% in 2022. This trend aligns with the growth in average rent prices, which increased from $848 in 2013 to $1,034 in 2022, representing a 22% rise over nine years. The population of Mehlville remained relatively stable during this period, growing from 28,093 in 2013 to 28,804 in 2022, suggesting that the increase in renting may be more related to housing affordability than population growth.
In 2023 and 2024, Mehlville's housing market continued to show strength. The average home price reached $231,072 in 2023, a 5.8% increase from 2022, and further rose to $240,448 in 2024, a 4% increase from 2023. These increases occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, indicating a robust demand for housing in the area despite higher borrowing costs.
Based on historical data and current trends, it is projected that average home prices in Mehlville may continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also likely to increase, following the trend of the past decade. However, the rate of increase may slow if homeownership becomes more attractive due to stabilizing home prices or if new housing developments increase supply.
In conclusion, Mehlville has experienced a gradual shift towards renting, with a slight decrease in homeownership rates over the past decade. This trend has occurred alongside significant increases in both average home prices and average rent prices. The resilience of the housing market, even in the face of rising interest rates, suggests a strong underlying demand for housing in Mehlville. As the community continues to evolve, these trends will likely shape its demographic and economic landscape in the coming years.
