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Pleasant Hill, Missouri: Rising Home Values and Ownership Rates Amidst Interest Rate Fluctuations
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
Pleasant Hill, Missouri, is a growing city located in Cass County. With a population of 11,822 in 2022 and a land area of 8.07 square miles, it offers a suburban atmosphere with a mix of urban amenities. The city has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
Homeownership in Pleasant Hill has remained relatively stable, with a slight increase observed in recent years. In 2013, the homeownership rate stood at 73%, and by 2022, it had risen to 78%. This upward trend coincides with a significant increase in average home prices. In 2013, the average home price was $153,373, which steadily climbed to $331,017 by 2022, representing a substantial 115.8% increase over nine years. This parallel growth suggests that despite rising prices, Pleasant Hill has maintained its attractiveness to homebuyers, possibly due to factors such as community appeal and economic opportunities.
The relationship between federal interest rates and homeownership rates in Pleasant Hill presents an interesting dynamic. From 2013 to 2016, as interest rates remained low (ranging from 0.11% to 0.40%), homeownership rates held steady at 73%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), Pleasant Hill saw a slight dip in homeownership to 72% in 2017 before recovering to 73% by 2019. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership to 74% by 2021, and further to 78% in 2022 despite rising rates (1.68%). This suggests that while interest rates play a role, other local factors may have a stronger influence on homeownership in Pleasant Hill.
Renter percentages in Pleasant Hill have fluctuated inversely to homeownership rates, naturally. The renter-occupied percentage decreased from 27% in 2013 to 22% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $929, which decreased to $790 in 2019, then rose to $948 in 2021, before dropping again to $773 in 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, might indicate a shift towards homeownership in the city, possibly driven by the relative affordability of homes compared to larger urban areas.
As of 2024, the average home price in Pleasant Hill has risen to $335,580, a slight increase from the 2023 figure of $331,932. This continued upward trend in home prices occurs against the backdrop of higher federal interest rates, which stood at 5.02% in 2023 and increased to 5.33% in 2024. Despite these higher interest rates, the housing market in Pleasant Hill appears to remain robust, with prices continuing to appreciate, albeit at a slower pace than in previous years.
Looking ahead, predictive models suggest that Pleasant Hill's housing market will likely continue its upward trajectory, though potentially at a more moderate pace. Average home prices are projected to increase by approximately 3-5% annually over the next five years, potentially reaching around $400,000 by 2029. Rent prices, which have shown more volatility, are expected to stabilize and increase gradually, possibly reaching an average of $900-$950 per month in the same timeframe.
In summary, Pleasant Hill has demonstrated a resilient and growing housing market characterized by increasing homeownership rates and steadily rising home values. The city has maintained its appeal to homebuyers despite significant price appreciation, suggesting strong underlying economic factors. While rent prices have fluctuated, the overall trend points towards a preference for homeownership in the community. As Pleasant Hill continues to grow, these housing trends will likely play a crucial role in shaping the city's development and demographic composition in the coming years.
