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Rising Home Values and Declining Ownership: Tipton, Missouri's Dynamic Real Estate Market
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
Tipton, Missouri is a small city located in Moniteau County. With a population of 2,931 in 2022 and covering an area of 2.09 square miles, Tipton offers a close-knit community atmosphere. Over the past decade, the city has experienced fluctuations in homeownership rates and average home prices, while average rent prices have shown a general upward trend.
The homeownership rate in Tipton has remained relatively stable in recent years, with 68% of residents owning their homes in 2022. This figure has decreased slightly from 80% in 2013. During this period, average home prices in Tipton have shown a consistent upward trend. In 2013, the average home price was $96,528, which increased to $162,954 by 2022, representing a significant 68.8% growth over nine years. This trend suggests that despite rising home prices, Tipton has maintained a strong base of homeowners.
Federal interest rates have played a role in homeownership trends in Tipton. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in Tipton decreased slightly from 80% to 67%. This counterintuitive trend might be attributed to other local economic factors. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 66-67%. The stability in homeownership rates during this period, despite rising interest rates, indicates a resilient housing market in Tipton.
Renter percentages in Tipton have shown a slight increase over the years, from 20% in 2013 to 32% in 2022. This trend has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $645, which increased to $784 in 2021, representing a 21.6% increase. However, there was a notable decrease to $654 in 2022, bringing average rent prices close to 2013 levels. The increase in renter percentages, despite the recent drop in average rent, might be attributed to factors such as changing demographics or economic conditions in the city.
In 2023 and 2024, Tipton's housing market continued to show growth. The average home price reached $168,051 in 2023 and further increased to $172,623 in 2024, representing a 5.9% growth over these two years. This growth occurred against the backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures demonstrate the resilience of Tipton's housing market in the face of higher borrowing costs.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Tipton will continue to rise over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are also expected to increase, possibly returning to and surpassing the 2021 peak of $784, potentially reaching $850-$900 per month by 2029. These projections assume continued economic stability and population growth in the area.
In summary, Tipton has maintained a stable homeownership rate despite rising home prices, demonstrating the city's appeal to long-term residents. The rental market has seen an increase in the percentage of renters, with average rent prices showing recent volatility. The city's housing market has shown resilience in the face of rising interest rates, with continued growth in home values. These trends suggest a dynamic and evolving housing market in Tipton, balancing homeownership opportunities with a growing rental sector.
