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Pilot Knob, Missouri: Rising Home Values and Ownership Rates Defy Interest Rate Trends
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
Pilot Knob, located in Missouri, is a small community with a population of 1,386 as of 2022. This charming city has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics. The homeownership rate in Pilot Knob has shown a notable increase in recent years. From 2019 to 2022, the percentage of owner-occupied homes rose from 62% to 74%, indicating a growing preference for homeownership among residents. This trend coincided with a significant rise in average home prices. In 2016, the average home price was $61,125, which steadily increased to $106,877 by 2022, representing a substantial 74.8% growth over six years.
The relationship between federal interest rates and homeownership rates in Pilot Knob follows a typical pattern. As interest rates remained relatively low from 2016 to 2020, ranging from 0.4% to 2.16%, the city saw a gradual increase in homeownership. This trend is particularly evident from 2020 to 2022, when interest rates were at historic lows (0.38% in 2020 and 0.08% in 2021), coinciding with a sharp increase in homeownership from 67% to 74%.
Conversely, the percentage of renters in Pilot Knob has decreased over time, dropping from 38% in 2019 to 26% in 2022. Despite this decline in the renter population, average rent prices have shown a steady increase. The average rent rose from $595 in 2019 to $616 in 2022, a 3.5% increase over three years. This upward trend in rent prices, despite a decreasing renter population, suggests a tightening rental market or an overall increase in living costs in the area.
In 2023 and 2024, Pilot Knob continued to experience growth in the housing market. The average home price reached $111,531 in 2023 and further increased to $113,030 in 2024, showing a continued upward trend. Interestingly, this growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, based on the trends observed, we can predict that average home prices in Pilot Knob will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. We might expect average home prices to reach approximately $125,000 to $130,000 by 2029. Average rent prices are also likely to continue their upward trajectory, potentially reaching around $650 to $675 per month in the same timeframe.
In summary, Pilot Knob has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. Despite rising interest rates, the housing market has shown resilience and continued growth. The rental market, while shrinking in terms of population, has seen steady increases in average rent prices. These trends suggest a dynamic and evolving housing landscape in Pilot Knob, with potential for continued growth in both home values and rental costs in the coming years.
