Loading Content...
Memphis, Missouri: Rising Home Values and Stable Ownership in a Small Midwestern City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Memphis, Missouri, a small city in the northeastern part of the state, has experienced notable changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, significant increases in average home prices, and volatility in rental prices, all of which reflect broader economic trends and local dynamics. Homeownership rates in Memphis have remained relatively stable, consistently above 60% throughout the observed period. In 2013, the homeownership rate was 70%, and by 2022, it had only slightly decreased to 69%. During this same period, average home prices in Memphis saw a substantial upward trend. From 2016 to 2022, average home prices more than doubled, increasing from $51,411 to $112,622, representing a 119% increase over six years. The relationship between federal interest rates and homeownership rates in Memphis shows some correlation. As interest rates remained low from 2013 to 2016, around 0.1%, the homeownership rate in Memphis stayed relatively stable between 67% and 70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership rates, dropping to 62% in 2017 before rebounding to 69% in 2022.
Renter percentages in Memphis have fluctuated inversely to homeownership rates, as expected. The percentage of renters increased from 30% in 2013 to 38% in 2017, coinciding with a period of rising average rent prices. Average rent in Memphis rose from $490 in 2013 to $620 in 2017, a 26.5% increase. However, there was a notable spike in average rent prices in 2019, reaching $1,082, before decreasing to $502 in 2022. This volatility in rent prices occurred while the renter population percentage decreased from 40% in 2018 to 31% in 2022.
Looking at the most recent data, average home prices in Memphis continued to rise in 2023 and 2024, reaching $113,116 and $115,279 respectively. This represents a modest increase of 2.4% from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the city.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Memphis will continue to rise, albeit at a more moderate pace. Given the recent slowdown in price growth between 2022 and 2024, average home prices might reach approximately $125,000 to $130,000 by 2029. Average rent prices, which have shown volatility, are more challenging to predict. However, if the trend towards increased homeownership continues, we might see a stabilization or slight decrease in average rent prices, potentially settling around $550 to $600 per month by 2029.
In summary, Memphis, Missouri has experienced significant growth in average home prices over the past decade, with homeownership rates remaining relatively stable despite fluctuations. The rental market has shown more volatility, both in terms of renter percentages and average rent prices. Recent increases in federal interest rates may influence future homeownership trends and housing affordability in the city. As Memphis continues to evolve, these housing market dynamics will play a crucial role in shaping the community's demographic and economic landscape.
