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Rising Home Values and High Ownership Rates: Frontenac's Affluent Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Frontenac, Missouri, is a small yet affluent suburb located in St. Louis County. Known for its upscale residential areas and high-end shopping destinations, Frontenac has consistently maintained a strong preference for homeownership over renting. The city has experienced notable fluctuations in average home prices and average rent costs over the years, with a general upward trend in both categories.
Homeownership rates in Frontenac have remained exceptionally high, ranging from 88% to 97% between 2013 and 2022. This strong preference for owning homes correlates with the steady increase in average home prices. In 2010, the average home price was $705,385, which dipped to $640,475 in 2012 before beginning a consistent upward trajectory. By 2022, the average home price had risen to $1,013,641, representing a substantial 43.7% increase from 2010. This trend suggests that despite rising prices, Frontenac residents have maintained their ability and desire to own homes.
Federal interest rates have played a significant role in homeownership trends. From 2010 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates in Frontenac. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership actually increased from 93% to 97%, possibly indicating that residents were motivated to purchase homes before rates climbed further. Even as rates dropped again in 2020 and 2021, homeownership remained high at 95-96%, suggesting that other factors beyond interest rates influence Frontenac's housing market.
Renter percentages in Frontenac have been consistently low, ranging from 3% to 12% between 2013 and 2022. Interestingly, average rent prices have shown significant volatility. In 2013, the average rent was $274, remaining stable until 2015. A dramatic increase occurred in 2016, with average rent jumping to $942. This upward trend continued, reaching $1,896 in 2020 before peaking at $2,079 in 2021. Despite these substantial increases in rent, the percentage of renters remained low, suggesting that Frontenac's rental market caters to a small but potentially affluent segment of the population.
In 2023, the average home price in Frontenac reached $1,060,303, representing a 4.6% increase from 2022. This upward trend continued into 2024, with average home prices rising to $1,102,232, a further 4% increase. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since 2007. Despite these higher interest rates, Frontenac's housing market has continued to appreciate, indicating strong underlying demand and resilience in the local real estate sector.
Looking ahead, predictive models suggest that average home prices in Frontenac will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $1,300,000 by 2029. Average rent prices are also expected to increase, potentially stabilizing around $2,200-$2,400 per month, reflecting the city's high-end rental market and limited supply of rental properties.
In summary, Frontenac has maintained exceptionally high homeownership rates despite significant increases in average home prices. The rental market, while small, has seen substantial growth in average rents. The city's real estate market has shown resilience in the face of rising interest rates, with continued appreciation in home values. These trends reflect Frontenac's status as a desirable, affluent suburb with a strong preference for homeownership and a limited but premium rental market.
