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Rising Home Values and Ownership Fluctuations in Parkcrest, Springfield
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
Parkcrest, a neighborhood in Springfield, Missouri, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general upward trend in average home prices, while ownership percentages have fluctuated. Average rent prices have also shown an overall increase, with some variations.
The interplay between homeownership rates and average home prices in Parkcrest reveals interesting patterns. In 2013, the homeownership rate was 49%, with an average home price of $112,701. As average home prices steadily increased to $149,432 by 2019, the homeownership rate rose to 55%. However, this trend reversed in 2020, with homeownership dropping to 47% despite average home prices continuing to climb to $161,656. By 2022, homeownership rebounded to 53%, coinciding with a significant jump in average home prices to $222,045.
Federal interest rates have influenced homeownership trends in Parkcrest. From 2013 to 2015, relatively low interest rates (0.11% to 0.13%) corresponded with an increase in homeownership from 49% to 55%. As interest rates rose more sharply from 2016 onwards, reaching 2.16% by 2019, homeownership rates showed some volatility but generally remained in the 51-55% range. The dramatic drop in interest rates to 0.38% in 2020 didn't immediately boost homeownership, likely due to broader economic uncertainties, but may have contributed to the recovery in homeownership rates observed by 2022.
Renter percentages and average rent prices in Parkcrest have also shown notable trends. In 2013, the renter-occupied percentage was 51%, with an average rent of $795. As the renter percentage decreased to 45% by 2015, average rent saw a slight decrease to $792. However, despite fluctuations in the renter percentage, average rent prices generally trended upward, reaching $886 by 2020 when the renter percentage peaked at 53%. By 2022, the renter percentage had decreased to 47%, while average rent reached $857, showcasing the complex interplay between rental demand and pricing in the neighborhood.
The years 2023 and 2024 have seen continued growth in average home prices in Parkcrest. In 2023, the average home price reached $231,369, a 4.2% increase from 2022. This upward trend continued into 2024, with average home prices climbing to $239,494, a further 3.5% increase. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Parkcrest are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties in the area. However, the rate of increase may be tempered by affordability concerns and potential shifts in housing preferences.
In summary, Parkcrest has demonstrated resilience in its housing market, with generally increasing average home and rent prices over the past decade. The neighborhood has maintained a relatively balanced mix of homeowners and renters, adapting to changing economic conditions and interest rate environments. The recent sharp increases in both home prices and interest rates will likely play a significant role in shaping the future housing landscape of this Springfield, Missouri neighborhood.
