O'Fallon, a neighborhood in St. Louis, Missouri, has experienced significant changes in its housing market over the past decade. The area has seen a notable shift in homeownership rates and housing prices, reflecting broader economic trends. From 2013 to 2022, homeownership rates in O'Fallon decreased from 46% to 38%, while average home prices increased substantially.

The relationship between federal interest rates and homeownership rates in O'Fallon demonstrates an inverse pattern. As interest rates remained low from 2013 to 2015, ranging from 0.11% to 0.13%, homeownership rates held relatively steady at around 43%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined to 38%. This trend aligns with the economic principle that lower interest rates typically encourage homeownership due to more affordable financing options.

The renter population in O'Fallon has grown correspondingly with the decline in homeownership. In 2013, 54% of residents were renters, increasing to 62% by 2022. Despite the growing renter population, average rent prices have shown some volatility. The average rent peaked at $951 in 2014, then experienced a general downward trend, reaching $755 in 2022. This decrease in average rent prices, despite the increasing renter population, could be attributed to various factors such as changes in housing stock or local economic conditions.