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Northwoods, Missouri: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Northwoods, Missouri, a small urban area of 0.7 square miles, has experienced significant changes in its housing market over the past decade. This compact city's demographic and economic shifts reflect broader trends while maintaining its unique local character. The homeownership rate in Northwoods has demonstrated resilience despite fluctuations. From 76% in 2013, it decreased to 69% by 2015 before rebounding to 73% in 2022. This trend correlates with average home prices, which started at $36,792 in 2013, dropped to $33,922 in 2015, and then surged to $77,930 in 2022, marking a substantial 129% increase over seven years. Federal interest rates have significantly influenced homeownership trends in Northwoods. From 2013 to 2015, historically low interest rates of 0.11% to 0.13% coincided with a slight decline in homeownership. However, as interest rates rose more significantly from 2016 onwards, reaching 1.68% in 2022, the city saw a stabilization and even a slight increase in homeownership rates. This suggests that local factors may have counteracted the potential negative impact of rising interest rates on homeownership.
Renter percentages in Northwoods have inversely mirrored homeownership trends, peaking at 31% in 2015 before settling at 27% in 2022. Average rent prices have shown volatility, starting at $1,055 in 2013, peaking at $1,174 in 2014, then fluctuating to $897 in 2022. This trend doesn't consistently align with the renter percentage, indicating that other factors may influence rent prices more significantly than demand from renters alone.
In 2023 and 2024, Northwoods experienced further developments in its housing market. The average home price reached $79,983 in 2023 but slightly dipped to $78,850 in 2024, indicating a potential cooling in the market. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024. These higher rates could impact affordability and potentially influence future homeownership trends in the city.
Predictive models suggest that average home prices in Northwoods may continue to appreciate at a more moderate pace over the next five years, potentially reaching around $85,000 to $90,000, assuming current economic conditions persist. Rent prices are projected to remain relatively stable, potentially fluctuating between $900 and $1,100, influenced by factors such as local employment rates and housing supply.
In summary, Northwoods has demonstrated resilience in its housing market, with homeownership rates remaining strong despite fluctuations in home prices and interest rates. The city has seen significant appreciation in home values since 2015, while rent prices have shown more volatility. The recent rise in interest rates and the slight cooling of home prices in 2024 suggest that the housing market may be entering a new phase, potentially affecting affordability and homeownership trends in the coming years.
