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Rising Home Values and Fluctuating Ownership in Wheaton, Missouri: A Decade of Housing Market Dynamics
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
Wheaton, a small city in Missouri, has experienced notable shifts in its housing landscape over the past decade. The city has seen fluctuations in homeownership rates, accompanied by changes in average home prices and rent costs. This analysis will explore these trends and their interrelationships, providing insights into Wheaton's housing market dynamics. The homeownership rate in Wheaton has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, 55% of housing units were owner-occupied. This percentage increased to 62% by 2021, before slightly decreasing to 57% in 2022. Concurrently, average home prices have risen significantly. From 2018 to 2022, average home prices in Wheaton increased from $116,276 to $186,672, representing a substantial 60.5% increase over four years.
Federal interest rates have played a role in shaping homeownership trends in Wheaton. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the overall increase in homeownership during this period. However, despite a sharp rise in interest rates to 1.68% in 2022, Wheaton maintained a relatively high homeownership rate of 57%, suggesting other factors also influence local housing decisions.
Renter occupancy in Wheaton has shown an inverse relationship to homeownership trends. The percentage of renter-occupied units decreased from 45% in 2013 to 38% in 2021, before rising slightly to 43% in 2022. Average rent prices have fluctuated over the years. In 2013, the average rent was $509, increasing to $544 in 2017. However, by 2022, average rent had decreased to $458, representing a 10% drop from its 2013 level. This decrease in rent prices, coupled with the city's declining population from 935 in 2013 to 699 in 2022, suggests a potential oversupply of rental units or economic factors affecting local rental demand.
In 2023 and 2024, Wheaton's housing market continued to evolve. Average home prices rose to $191,435 in 2023 and further increased to $197,759 in 2024, indicating a sustained upward trend in property values. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, predictive models suggest that Wheaton's average home prices may continue to rise over the next five years, potentially reaching around $230,000 by 2029 if current trends persist. However, the rate of increase might slow due to higher interest rates. Average rent prices, which have been declining, may stabilize or see modest increases, potentially reaching approximately $500 by 2029, assuming economic conditions and population trends remain relatively stable.
In summary, Wheaton has experienced a general trend of increasing homeownership rates and rising average home prices from 2013 to 2022, despite some recent fluctuations. The rental market has seen a decrease in both occupancy rates and average rents over the same period. The city's declining population and recent sharp increases in interest rates are key factors that may influence future housing market dynamics in Wheaton.
