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Morehouse's Housing Market: Rising Home Values and Ownership Rates Amidst Recent Cooling Trend
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Morehouse, Missouri, is a small urban community that has experienced notable fluctuations in its population and housing market over the past decade. The city has seen a general trend of increasing homeownership rates, with average home prices showing steady growth, while average rent prices have remained relatively stable.
The homeownership rate in Morehouse has shown an overall upward trend from 2013 to 2022. In 2013, 55% of housing units were owner-occupied. This percentage increased to 61% by 2019, before slightly decreasing to 59% in 2022. Concurrently, average home prices have seen significant growth. In 2011, the average home price was $47,032, which rose to $73,456 by 2022, representing a 56% increase over this period. This positive correlation between homeownership rates and average home prices suggests that rising property values have not deterred homeownership in the city.
Federal interest rates have played a role in shaping homeownership trends in Morehouse. From 2011 to 2015, when interest rates were extremely low (ranging from 0.1% to 0.13%), homeownership rates increased from 55% to 57%. As interest rates began to rise more sharply from 2016 onwards, homeownership rates continued to climb, reaching 61% in 2019 when the federal interest rate was 2.16%. This trend suggests that other local factors may have had a stronger influence on homeownership than national interest rates during this period.
Renter percentages in Morehouse have generally decreased as homeownership rates have risen. In 2013, 45% of housing units were renter-occupied, which declined to 39% by 2019, before slightly increasing to 41% in 2022. Average rent prices have shown moderate fluctuations. In 2013, the average rent was $523, which increased to $592 in 2015, before decreasing to $549 in 2019. By 2022, the average rent had risen again to $605. These fluctuations in rent prices do not show a strong correlation with changes in the renter population, suggesting that local economic factors and housing availability may have more influence on rental rates than population shifts alone.
In 2023 and 2024, Morehouse experienced a shift in its housing market. The average home price decreased from $73,456 in 2022 to $68,760 in 2023, and further to $65,520 in 2024. This represents a 10.8% decrease over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. This combination of falling home prices and rising interest rates suggests a cooling housing market, potentially impacting homeownership rates and affordability.
Looking ahead, based on recent trends and current economic conditions, we can project that average home prices in Morehouse may continue to decrease slightly or stabilize over the next five years. This projection takes into account the recent downturn in prices and the high interest rate environment. Average rent prices, which have shown more stability, are likely to continue their gradual upward trend, potentially reaching around $650-$700 by 2029.
In summary, Morehouse has experienced a general trend of increasing homeownership rates and rising average home prices over the past decade, despite fluctuations in federal interest rates. However, the recent decrease in home prices coupled with rising interest rates signals a potential shift in the local housing market. Rental prices have remained relatively stable with moderate growth, and this trend is expected to continue in the coming years.
