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Rising Home Values and Ownership Fluctuations in Hominy Branch, Columbia
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
Hominy Branch, a neighborhood in Columbia, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing average home prices, while ownership percentages have fluctuated. Average rent prices have also shown an upward trajectory, reflecting the dynamic nature of the local real estate market.
The relationship between homeownership rates and average home prices in Hominy Branch reveals interesting patterns. In 2013, the homeownership rate was 40%, with an average home price of $139,188. As average home prices steadily increased, reaching $159,538 by 2018, the homeownership rate decreased to 36%. However, this trend reversed in subsequent years. By 2022, despite average home prices rising to $217,445, the homeownership rate increased significantly to 51%. This suggests that other factors, such as local economic conditions or demographic shifts, may have influenced homeownership rates more than price alone.
Federal interest rates have played a role in homeownership trends in Hominy Branch. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.4%), homeownership rates actually declined from 40% to 28%. However, as interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates increased from 30% to 47%. This counterintuitive trend suggests that local factors may have had a stronger influence on homeownership than national interest rates during this period.
Renter percentages and average rent prices in Hominy Branch have shown a correlation with population changes. In 2013, when the population was 4,886, the renter percentage was 60% with an average rent of $735. As the population peaked at 5,812 in 2017, the renter percentage increased to 69% with average rent rising to $802. However, by 2022, as the population decreased to 4,891, the renter percentage dropped to 49%, while average rent continued to climb to $1,045. This indicates that despite a decrease in demand due to lower population, other factors kept pushing rent prices upward.
In 2023 and 2024, Hominy Branch has experienced further increases in average home prices. The average home price in 2023 reached $237,468, and in 2024 it further increased to $246,099. This coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests strong demand in the local housing market.
Looking ahead, predictive models forecast a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are expected to surpass $275,000 by 2029, while average rent prices could approach $1,300 per month. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, Hominy Branch has demonstrated resilience in its housing market, with increasing home values despite fluctuations in homeownership rates. The neighborhood has shown that local factors can sometimes outweigh national trends in influencing housing dynamics. The recent uptick in homeownership, coupled with rising home and rent prices, suggests a strong and competitive real estate market in this Columbia neighborhood.
