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Oak Ridge, Missouri: Steady Home Values and High Ownership Rates in a Small Town
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
Oak Ridge, a town in Missouri, has experienced significant demographic and housing market changes over the past decade. This small community has seen fluctuations in its homeownership rates, average home prices, and rental market, reflecting broader economic trends and local developments. The homeownership rate in Oak Ridge has remained consistently high, hovering around 90% throughout the observed period. In 2013, the homeownership rate stood at 93%, and by 2022, it maintained a strong 93% rate. This stability in homeownership coincides with a steady increase in average home prices. In 2016, the average home price in Oak Ridge was $161,197, and it rose consistently year over year, reaching $255,349 by 2022. This represents a substantial 58.4% increase in average home values over six years.
The relationship between federal interest rates and homeownership rates in Oak Ridge appears to follow the general trend of lower interest rates encouraging homeownership. For instance, in 2016, when interest rates were relatively low at 0.4%, the homeownership rate was 92%. As interest rates gradually increased to 1.83% in 2018, there was a slight dip in homeownership to 90%. However, the town's consistently high homeownership rates suggest that other local factors may play a significant role in maintaining this trend.
The rental market in Oak Ridge has shown some fluctuations, both in terms of the percentage of renters and average rent prices. In 2013, only 6% of the population were renters, with an average rent of $631. By 2022, the renter population had slightly increased to 7%, with the average rent rising to $642. Interestingly, there were notable spikes in average rent, such as in 2016 when it reached $1,029, coinciding with a slight decrease in the renter population to 8%. These fluctuations could be attributed to changes in the local economy or housing supply.
In 2023 and 2024, Oak Ridge's housing market showed signs of stabilization. The average home price in 2023 was $253,368, a slight decrease from the previous year. However, in 2024, the average home price rebounded to $267,073, indicating a resilient market. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and housing affordability in the town.
Looking ahead, predictive models suggest that average home prices in Oak Ridge may continue to rise over the next five years, albeit at a more modest pace. Given the historical trend, we might expect average home prices to reach approximately $300,000 by 2029. The rental market is likely to remain relatively stable, with average rents potentially increasing to around $700-$750 per month. However, these predictions are subject to various economic factors and local market conditions.
In summary, Oak Ridge has maintained a strong homeownership culture despite rising home prices. The town's housing market has shown resilience, with consistent growth in property values over the years. While the rental market has experienced some fluctuations, it remains a small but stable segment of the housing landscape. The recent stabilization in home prices and the impact of higher interest rates will be crucial factors to watch in the coming years, potentially influencing the accessibility of homeownership for new residents in this Missouri town.
