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Rising Home Values and Ownership Fluctuations: Montrose, Missouri's Dynamic Housing 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
Montrose, a small city in Missouri, has experienced significant fluctuations in its housing market over the past decade. This quaint community has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Montrose has shown a general upward trend from 2013 to 2018, before experiencing a slight decline in recent years. In 2013, the homeownership rate stood at 71%, gradually increasing to a peak of 78% in 2018. However, by 2022, it had decreased to 70%. This trend correlates interestingly with the average home prices in the area. From 2017 to 2022, average home prices in Montrose rose steadily, from $145,489 to $267,139, representing an impressive 83.6% increase over five years.
The relationship between federal interest rates and homeownership rates in Montrose follows a generally established pattern. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates increased from 71% to 73%. The subsequent rise in interest rates to 1.83% by 2018 coincided with the peak homeownership rate of 78%, possibly due to anticipation of future rate increases. However, as rates continued to climb, reaching 1.68% in 2022, homeownership rates began to decline, settling at 70% that year.
Rental trends in Montrose have shown interesting patterns as well. The percentage of renters decreased from 29% in 2013 to 22% in 2018, before rising again to 30% by 2022. Concurrently, average rent prices demonstrated a consistent upward trajectory. In 2013, the average rent was $329, which increased to $575 by 2018, and further rose to $736 in 2022, marking a 123.7% increase over the nine-year period. This substantial rise in rent prices, coupled with the city's fluctuating population, which ranged from 648 in 2014 to 914 in 2021, suggests a complex interplay of supply and demand factors in the local rental market.
In 2023 and 2024, Montrose's housing market showed signs of stabilization. The average home price in 2023 was $265,450, a slight decrease from the previous year, while in 2024 it rebounded to $274,184. This occurred against a backdrop of rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, the highest levels seen in over a decade.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Montrose may continue to rise moderately over the next five years, potentially reaching around $300,000 by 2029. Average rent prices are also expected to maintain their upward trajectory, possibly exceeding $800 per month within the same timeframe.
In summary, Montrose has experienced significant changes in its housing market, characterized by fluctuating homeownership rates, steadily increasing average home prices, and rising average rent costs. These trends, influenced by factors such as federal interest rates and local population dynamics, paint a picture of a small city navigating the complexities of the modern housing market.
