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Mount Pleasant's Housing Market: Rising Home Values Amid Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Mount Pleasant, a neighborhood in St. Louis, Missouri, has experienced significant changes in its housing market over the past decade. This urban area has seen a notable decrease in homeownership rates coupled with a substantial increase in average home prices, particularly in recent years. The homeownership rate in Mount Pleasant has shown a downward trend since 2013. In 2013, the homeownership rate stood at 34%, but by 2022, it had declined to 24%, representing a 10 percentage point decrease over nine years. Interestingly, this decline in homeownership coincided with a significant increase in average home prices. In 2013, the average home price in Mount Pleasant was $53,809. By 2022, it had more than doubled, reaching $110,170. Federal interest rates have played a crucial role in shaping homeownership trends in Mount Pleasant. From 2013 to 2016, interest rates remained relatively low, ranging from 0.1% to 0.4%. During this period, homeownership rates in Mount Pleasant remained relatively stable, fluctuating between 26% and 34%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the neighborhood showed a general decline, dropping to 24% in 2022. This trend aligns with the well-established pattern that higher interest rates often lead to decreased homeownership due to increased borrowing costs.
As homeownership rates declined, the percentage of renters in Mount Pleasant increased. In 2013, 66% of residents were renters, and by 2022, this figure had grown to 76%. Despite this increase in rental demand, average rent prices in the neighborhood have shown some volatility. In 2013, the average rent was $662, rising to a peak of $772 in 2014 before experiencing a general downward trend. By 2022, the average rent had decreased to $617, which is lower than the 2013 figure despite the increased proportion of renters. This unexpected trend might be attributed to factors such as changes in housing quality or local economic conditions.
In 2023 and 2024, Mount Pleasant's housing market showed signs of stabilization. The average home price in 2023 was $108,895, a slight decrease from 2022, but it rebounded to $111,008 in 2024. This modest growth occurred despite federal interest rates reaching 5.02% in 2023 and 5.33% in 2024, which are significantly higher than previous years.
Looking ahead, based on recent trends and current market conditions, it's projected that average home prices in Mount Pleasant will continue to rise moderately over the next five years. We can expect prices to potentially reach around $120,000 to $125,000 by 2029. Average rent prices, which have been more volatile, may stabilize and show a slight upward trend, potentially reaching $650 to $700 per month in the same timeframe.
In summary, Mount Pleasant has experienced a significant shift from homeownership to renting over the past decade, coupled with a substantial increase in average home prices. Despite rising interest rates and a growing renter population, the neighborhood's housing market has shown resilience, with home prices continuing to climb. The coming years are likely to see continued growth in both home values and rental rates, albeit at a more moderate pace.
