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Odessa, Missouri: Rising Home Values and Stable Ownership in a Small-Town Setting
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
Odessa, Missouri, a small city in Lafayette County, has experienced significant changes in its housing market over the past decade. With a population of 6,760 in 2022 and an area of 4.1 square miles, this compact community has seen fluctuations in homeownership rates, average home prices, and average rent prices. The homeownership rate in Odessa has remained generally high, with some variability. In 2013, 72% of residents owned their homes. This figure peaked at 77% in 2015 and 2016, before returning to 72% in 2020 and 2021. Notably, 2022 saw a return to the 77% homeownership rate. During this period, average home prices steadily increased. In 2012, the average home price was $95,786, which rose to $216,724 by 2022, representing a substantial 126% increase over a decade.
The relationship between federal interest rates and homeownership rates in Odessa shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates in Odessa reached their peak of 77%. However, even as interest rates began to rise from 2017 onwards, homeownership rates in Odessa remained relatively stable, suggesting other local factors may have influenced housing decisions.
Renter percentages in Odessa have inversely mirrored homeownership rates, ranging from a high of 28% in 2013 to a low of 23% in 2015, 2016, and 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $793, which increased to $886 by 2021, representing an 11.7% increase over eight years. However, 2022 saw a slight decrease to $825, possibly influenced by the increase in homeownership that year.
In 2023 and 2024, Odessa's housing market continued to evolve. The average home price in 2023 reached $228,155, a 5.3% increase from 2022. In 2024, it further rose to $237,595, showing a 4.1% year-over-year increase. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, marking the highest rates since 2007.
Looking ahead, predictive models suggest that average home prices in Odessa may continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on recent trends, average home prices could reach approximately $260,000 to $280,000 by 2029. Average rent prices might also see moderate increases, potentially reaching $950 to $1,000 per month in the next five years, assuming steady population growth and continued demand for rental properties.
In summary, Odessa's housing market has demonstrated resilience and growth over the past decade. Despite fluctuations in federal interest rates, homeownership rates have remained relatively high, while average home prices have shown significant appreciation. The rental market has also seen steady growth in prices, reflecting the overall health of the local housing market. As Odessa moves forward, balancing affordability with growth will likely be key to maintaining its attractive housing landscape.
