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Rising Home Ownership and Values in St. Louis' Academy Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Academy neighborhood in St. Louis, Missouri, has undergone significant changes in its housing market and demographics over the past decade. This analysis focuses on the trends in homeownership, home values, and rental market dynamics from 2013 to 2024, with projections extending to 2029. The data reveals a compelling story of neighborhood transformation and resilience in the face of changing economic conditions.
Homeownership rates in Academy have shown a notable increase from 2013 to 2022. In 2013, the homeownership rate stood at 41%, rising to 47% by 2022. This upward trend coincided with a substantial increase in average home prices. The average home price in 2016 was $53,406, which rose dramatically to $90,051 by 2022, representing a significant 68.6% increase over a six-year period.
An interesting pattern emerges when examining the relationship between federal interest rates and homeownership rates in Academy. Despite historically low interest rates from 2013 to 2016, ranging from 0.09% to 0.4%, homeownership rates remained relatively stable at around 41-43%. Surprisingly, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates paradoxically increased, peaking at 56% in 2019 before settling at 47% in 2022. This suggests that factors beyond interest rates, such as local economic conditions or housing policies, may have played a significant role in driving homeownership in the neighborhood.
The rental market in Academy has experienced shifts corresponding to the changes in homeownership. As homeownership increased, the percentage of renters generally decreased. In 2013, 59% of residents were renters, which decreased to 53% by 2022. Average rent prices have shown some volatility but an overall upward trend. The average rent was $863 in 2013, fluctuating over the years to reach a high of $912 in 2019 before decreasing to $807 in 2022. It's worth noting that the population of Academy has decreased from 2,925 in 2013 to 2,112 in 2022, which may have influenced the dynamics of the rental market.
Recent data shows continued growth in the housing market, albeit at a more modest pace. The average home price in Academy was $78,745 in 2023, increasing to $79,858 in 2024, representing a 1.4% year-over-year increase. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends and housing affordability in the neighborhood.
Looking ahead, predictive models forecast continued growth in both home prices and rental rates over the next five years. Average home prices in Academy are projected to rise to approximately $95,000 by 2029, assuming relatively stable economic conditions. For rent prices, a moderate increase is anticipated, potentially reaching an average of $875 per month by 2029, taking into account historical fluctuations and the overall upward trend.
In conclusion, the Academy neighborhood has experienced a shift towards increased homeownership and rising average home prices over the past decade. Despite increasing federal interest rates, the area has maintained a relatively high rate of homeownership. The rental market, while experiencing some volatility, generally remains strong. These trends, coupled with the recent modest increase in home prices and high interest rates, suggest a stabilizing housing market in Academy with potential for continued growth in both home values and rental prices over the next five years.
