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Rising Home Values and Declining Ownership in Walnut Park East: A Decade of Change
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
Walnut Park East, a neighborhood in St. Louis, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general decline in homeownership percentages, while average home prices have shown an upward trend, particularly in recent years.
From 2013 to 2022, the homeownership rate in Walnut Park East decreased from 60% to 47%. This decline coincided with a notable increase in average home prices. In 2016, the average home price was $25,245, which steadily rose to $35,659 by 2022, representing a 41% increase over six years. This inverse relationship between homeownership rates and housing prices suggests that rising property values may have made homeownership less accessible for some residents.
The federal interest rates have played a significant role in shaping homeownership trends in Walnut Park East. In 2013, when homeownership was at 60%, the federal interest rate was 0.11%. As interest rates remained low through 2020 (0.38%), homeownership fluctuated but generally declined. Interestingly, despite the exceptionally low interest rate of 0.08% in 2021, homeownership only slightly increased to 54% from 55% in 2020, indicating that other factors beyond interest rates were influencing homeownership decisions in the neighborhood.
Renter percentages in Walnut Park East have generally increased from 40% in 2013 to 53% in 2022, mirroring the decline in homeownership. Average rent prices, however, have shown some volatility. In 2013, the average rent was $939, which decreased to $806 by 2015. Rent prices then fluctuated, reaching $905 in 2021 before dropping to $792 in 2022. This trend suggests that while more residents are renting, the rental market has not seen consistent price increases, possibly due to factors such as changes in housing supply or local economic conditions.
In 2023 and 2024, Walnut Park East experienced a slight decline in average home prices. The average home price in 2023 was $34,227, down from $35,659 in 2022. This trend continued into 2024, with average home prices further decreasing to $32,811. Notably, federal interest rates increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Walnut Park East may continue to face downward pressure in the short term due to high interest rates. However, as the market adjusts, prices could stabilize and potentially see modest growth over the next five years. Rent prices are expected to remain relatively stable, with possible slight increases to keep pace with inflation and housing demand in the area.
In summary, Walnut Park East has witnessed a shift towards a renter-majority community over the past decade, with homeownership rates declining as average home prices increased. The recent rise in interest rates has begun to impact the housing market, leading to a slight decrease in home prices. Moving forward, the neighborhood is likely to see a period of adjustment in both the housing and rental markets as it responds to these economic factors.
