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Purdy, Missouri: A Decade of Housing Shifts and Rising Home Values
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
Purdy, Missouri, is a small urban enclave nestled in the southwestern part of the state. This compact city, spanning just 0.65 square miles, has experienced significant demographic shifts and housing market fluctuations over the past decade. The city has seen a general trend of decreasing homeownership rates coupled with rising average home prices and rent costs, reflecting broader economic changes and local market dynamics.
The homeownership rate in Purdy has shown a notable decline since 2013. In 2013, 72% of residents owned their homes, but by 2022, this figure had decreased to 67%. This downward trend coincides with a substantial increase in average home prices. In 2018, the average home price was $118,003, which rose steadily to reach $182,011 by 2022, representing a 54% increase over just four years. This inverse relationship between homeownership rates and home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Purdy. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in the city actually increased from 72% to 78%. This aligns with the general principle that lower interest rates make mortgages more affordable, encouraging homeownership. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Purdy declined, falling to 67% by 2022.
The rental market in Purdy has shown interesting trends as well. The percentage of renters increased from 28% in 2013 to 32% in 2022. This rise in the renter population coincided with an increase in average rent prices. In 2013, the average rent was $448, which rose to $598 by 2022, representing a 33% increase. It's worth noting that the city's population decreased from 2,377 in 2013 to 2,110 in 2022, suggesting that the increase in rent prices was not driven by population growth but potentially by other factors such as limited housing supply or improved rental property quality.
Looking at the most recent data, the average home price in Purdy continued to rise, reaching $190,760 in 2023 and $192,611 in 2024. This represents a 4.8% increase from 2022 to 2023 and a further 1% increase from 2023 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the pace of home price increases in the coming years.
Applying predictive models to forecast the next five years, we anticipate that average home prices in Purdy will continue to rise, but at a more moderate pace due to the higher interest rates. We project average home prices could reach approximately $210,000 by 2029. For rent prices, the trend suggests continued growth, potentially reaching an average of around $700 per month by 2029, assuming consistent economic conditions and housing policies.
In summary, Purdy has experienced a shift towards a more rental-heavy housing market over the past decade, with decreasing homeownership rates despite rising property values. The inverse relationship between federal interest rates and homeownership rates has been evident, particularly in recent years. The rental market has expanded, with both the proportion of renters and average rent prices increasing. These trends reflect the complex interplay of economic factors, population changes, and housing market dynamics in this small Missouri city.
