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Rising Home Values and Declining Ownership in Stonecrest, Columbia: A Decade of Housing Market Shifts
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
Stonecrest, a neighborhood in Columbia, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in Stonecrest has shown a notable decline from 2013 to 2022. In 2013, 70% of residents were homeowners, but this figure dropped to 61% by 2022. Concurrently, average home prices have steadily increased. In 2013, the average home price was $198,407, rising to $314,242 by 2022, representing a substantial 58.4% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Stonecrest remained relatively stable, ranging from 67% to 70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 61%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Stonecrest has grown as homeownership has declined. In 2013, 30% of residents were renters, increasing to 39% by 2022. Average rent prices have also risen significantly during this period. In 2013, the average rent was $465, climbing to $954 by 2022, a 105% increase. This sharp rise in rent prices, coupled with the increase in the renter population, suggests a growing demand for rental properties in the area, possibly driven by those priced out of the homeownership market.
Looking at the most recent data, average home prices in Stonecrest continued to rise in 2023 and 2024, reaching $330,347 and $339,945 respectively. This represents a further 8.2% increase from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These high interest rates, not seen since the early 2000s, could potentially impact future homeownership rates and housing market dynamics in the neighborhood.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Stonecrest will continue to rise, albeit at a potentially slower rate due to the higher interest rates. By 2029, average home prices could reach approximately $380,000 to $400,000. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month by 2029, assuming the current trajectory continues.
In summary, Stonecrest has experienced a shift towards a more rental-oriented market over the past decade, with declining homeownership rates and rising average home and rent prices. The recent spike in interest rates may further impact this trend, potentially making homeownership even more challenging for some residents. As the neighborhood continues to evolve, these housing market dynamics will likely play a crucial role in shaping its demographic and economic landscape in the coming years.
