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Rising Home Values and Declining Ownership in Columbia's Parkade 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
Parkade, a neighborhood in Columbia, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis examines the trends in home values, ownership patterns, and rental market dynamics from 2013 to 2024, highlighting the impact of economic factors on the local housing landscape. Homeownership rates in Parkade have shown a notable decline from 2013 to 2022. In 2013, 64% of residents owned their homes, but by 2022, this figure had dropped to 46%. Simultaneously, average home prices rose steadily. The average home price in 2013 was $122,389, increasing to $204,536 by 2022, representing a 67% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a significant role in shaping these housing market dynamics. From 2013 to 2016, interest rates remained extremely low, below 0.5%, which typically encourages homeownership. During this period, Parkade saw a slight increase in homeownership from 64% to 66%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates in Parkade declined sharply. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership decreased, the percentage of renters in Parkade increased from 36% in 2013 to 54% in 2022. Average rent prices fluctuated during this period, starting at $727 in 2013, peaking at $1,329 in 2018, and settling at $1,351 in 2022. This represents an overall increase of 86% in average rent from 2013 to 2022. The rise in both home prices and rent costs, coupled with the shift towards renting, suggests a changing housing landscape in Parkade, possibly influenced by factors such as housing affordability and changing demographics.
In 2023 and 2024, the housing market in Parkade continued its upward trajectory. The average home price reached $218,720 in 2023 and further increased to $230,591 in 2024, marking a 12.7% rise over two years. This coincided with a significant jump in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These high interest rates, not seen since the early 2000s, are likely to have a substantial impact on home affordability and mortgage accessibility in the neighborhood.
Looking ahead, applying predictive models to these trends suggests that average home prices in Parkade may continue to rise over the next five years, potentially reaching around $275,000 by 2029. Average rent prices could also see an upward trend, possibly exceeding $1,500 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Parkade has witnessed a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both home prices and rent costs. The interplay between federal interest rates, housing affordability, and changing demographics has shaped these trends. As the neighborhood continues to evolve, these housing market dynamics will likely play a crucial role in shaping its future character and resident composition.
