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Richmond, Missouri: Steady Homeownership Amid Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Richmond, Missouri, is a small yet dynamic community that has experienced notable changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the city's evolving real estate landscape. The homeownership rate in Richmond has remained relatively stable, fluctuating between 57% and 62% from 2013 to 2022. In 2013, the homeownership rate was 62%, which decreased to 57% in 2014 but rebounded to 61% by 2022. Concurrently, average home prices have shown a consistent upward trend. In 2012, the average home price was $61,258, which steadily increased to $195,855 by 2022, representing a significant 220% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in Richmond. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), the homeownership rate remained relatively stable around 60%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), the homeownership rate experienced slight fluctuations but generally maintained around 60%. This suggests that while interest rates influence homeownership, other local factors also play a significant role in Richmond's housing market.
Renter percentages in Richmond have shown slight variations, ranging from 38% to 43% between 2013 and 2022. The average rent prices have experienced both increases and decreases during this period. In 2013, the average rent was $479, which decreased to $374 in 2019, representing a 22% drop. However, from 2019 to 2022, average rent prices saw a substantial increase, rising to $806, a 115% jump in just three years. This rapid increase in rent prices coincides with a population growth from 6,414 in 2019 to 6,912 in 2022, suggesting increased housing demand may have contributed to rising rent prices.
In 2023 and 2024, the housing market in Richmond continued its upward trajectory. The average home price reached $205,299 in 2023 and further increased to $210,376 in 2024, representing a 2.5% year-over-year growth. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis.
Looking ahead, based on the observed trends, it's projected that average home prices in Richmond will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $240,000 by 2029. Average rent prices are also expected to increase, possibly reaching around $1,000 per month by 2029, driven by population growth and housing demand.
In summary, Richmond has experienced significant growth in both average home prices and rent prices over the past decade. The homeownership rate has remained relatively stable despite these changes, suggesting a resilient local real estate market. The recent sharp increases in both home prices and rent prices, coupled with rising interest rates, indicate a dynamic and evolving housing landscape in Richmond that warrants continued observation.
