Loading Content...
Preston, Missouri: Rising Home Values and Ownership Rates Amid Population Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Preston, Missouri: A Decade of Housing Market Transformation Preston, Missouri, a small community, has undergone significant changes in its housing market and demographics over the past decade. The city has experienced notable population growth, increasing from 1,055 residents in 2013 to 1,459 in 2022. This growth has been accompanied by a substantial shift towards homeownership and rising property values. This analysis examines the trends in homeownership, rental markets, and their relationship to housing prices and federal interest rates in Preston. From 2013 to 2022, Preston witnessed a marked increase in homeownership rates. The percentage of owner-occupied homes rose from 82% in 2013 to 88% in 2022, indicating a growing preference for property ownership within the community. This 6 percentage point increase suggests a strong demand for owned properties, despite the lack of comprehensive data on average home prices for most of the analyzed period.
The relationship between federal interest rates and homeownership rates in Preston generally aligns with expected patterns. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate in Preston increased. This trend is consistent with the general understanding that lower interest rates encourage homeownership by making financing more affordable. A slight dip in homeownership from 87% in 2017 to 84% in 2019 coincided with a gradual increase in interest rates, which peaked at 2.16% in 2019.
Rental Market Dynamics and Price Trends The rental market in Preston has shown interesting dynamics over the years. Renter percentages have fluctuated inversely to homeownership rates, decreasing from 18% in 2013 to 12% in 2022. Despite this decline in the renter population, average rent prices have consistently increased. In 2013, the average rent was $538, which rose to $775 by 2022, representing a substantial 44% increase over nine years. This upward trend in rent prices, even with a decreasing renter population, could be attributed to the overall population growth in Preston, potentially creating higher demand for the limited rental properties available.
Recent Housing Market Stabilization In 2023 and 2024, Preston's housing market showed signs of stabilization. The average home price in 2023 was $191,484, with a slight decrease to $190,551 in 2024. This minor decline of less than 0.5% suggests a relatively stable housing market. Interestingly, this period coincides with significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slight cooling in home prices.
Future Projections and Market Outlook Looking ahead to the next five years, we can forecast trends based on historical data and current market conditions. For average home prices, a period of modest growth or stability might be expected, given the recent plateau and high interest rates. Assuming interest rates gradually decrease, average home prices in Preston could potentially reach around $200,000 to $210,000 by 2029. For rent prices, the consistent upward trend suggests continued growth. Average rent might increase to approximately $850-$900 per month by 2029, factoring in historical growth rates and potential economic changes.
Conclusion Preston has experienced a significant shift towards homeownership over the past decade, with increasing average rent prices despite a decreasing renter population. The relationship between federal interest rates and homeownership rates follows expected patterns, with lower rates generally encouraging higher homeownership. The recent stabilization in home prices, coupled with high interest rates, suggests a potential cooling in the housing market. However, the strong trend of population growth and increasing homeownership rates indicate a robust demand for housing in Preston, which is likely to continue shaping its real estate market in the coming years.
