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Rising Home Values and Declining Ownership: Clayton-Tamm's Shifting Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Clayton-Tamm, a neighborhood in St. Louis, Missouri, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the area witnessed a notable decline in homeownership rates, dropping from 54% to 42%, while the percentage of renters increased from 46% to 58%. This shift towards renting coincided with a substantial increase in average home prices, rising from $115,993 in 2013 to $197,288 in 2022, a 70% increase over nine years.
The relationship between homeownership rates and average home prices in Clayton-Tamm appears inverse. As average home prices climbed, the percentage of homeowners decreased. For example, when the average home price increased from $161,678 in 2019 to $175,792 in 2020, homeownership fell from 49% to 45% in the following year. This trend suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Clayton-Tamm. From 2013 to 2016, interest rates remained historically low, around 0.1% to 0.4%, and homeownership rates stayed relatively stable between 53% and 56%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling to 42% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in Clayton-Tamm has also seen significant changes. Average rent prices increased from $958 in 2013 to $1,129 in 2022, a 17.8% rise. This increase in average rent coincided with the growth in the renter population, from 46% in 2013 to 58% in 2022. The neighborhood's population decreased from 2,164 in 2013 to 1,841 in 2022, suggesting that the shift towards renting was not driven by population growth but rather by changing housing preferences or affordability issues.
The most recent data shows that the average home price in Clayton-Tamm reached $204,218 in 2023 and further increased to $208,168 in 2024. This continued upward trend in home prices occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may further challenge homeownership aspirations in the neighborhood.
Predictive models forecast that average home prices in Clayton-Tamm will continue to rise over the next five years, albeit at a potentially slower rate due to high interest rates. By 2029, average home prices could reach approximately $230,000 to $240,000. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,400 per month by 2029, driven by the growing demand for rental properties in the neighborhood.
In summary, Clayton-Tamm has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and average rent. The inverse relationship between rising home prices and declining homeownership rates, coupled with the impact of fluctuating interest rates, has reshaped the neighborhood's housing landscape. As these trends continue, Clayton-Tamm may see further changes in its residential composition and housing market dynamics in the coming years.
