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Rising Home Values and Ownership: Higginsville's Evolving 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
Higginsville, Missouri, a small city in Lafayette County, has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and average rent prices from 2013 to 2024. Higginsville witnessed a substantial increase in homeownership rates between 2013 and 2022, rising from 66% to 77%. This upward trend coincided with a remarkable growth in average home prices. In 2012, the average home price was $81,343, which steadily increased to $180,868 by 2022, representing a 122% growth over a decade. This correlation suggests that as home values appreciated, more residents were motivated to invest in homeownership.
The relationship between federal interest rates and homeownership rates in Higginsville follows the expected pattern. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates generally increased. The city saw a slight dip in ownership to 60% in 2019 but quickly rebounded to 70% in 2021 when interest rates hit a low of 0.08%. This trend aligns with the principle that lower interest rates make mortgages more affordable, encouraging homeownership.
Renter percentages in Higginsville have fluctuated inversely to homeownership rates. In 2013, 34% of residents were renters, a figure that remained relatively stable until 2019 when it peaked at 40%. However, by 2022, the renter percentage had decreased to 23%. Average rent prices showed a different pattern, rising from $800 in 2013 to a peak of $846 in 2014, then gradually declining to $747 by 2022. This decrease in both renter percentages and average rent prices could be attributed to the growing preference for homeownership in the city.
In 2023 and 2024, Higginsville's housing market continued to evolve. The average home price reached $189,944 in 2023 and further increased to $198,717 in 2024, demonstrating ongoing appreciation. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can forecast potential 5-year trends for Higginsville's housing market. Average home prices are likely to continue their upward trajectory, potentially reaching around $240,000 by 2029. However, the rate of increase may slow due to higher interest rates. Average rent prices, which have been declining, might stabilize or see a slight increase, potentially reaching around $800 per month by 2029, as higher home prices and interest rates could push some residents back into renting.
In summary, Higginsville has experienced a strong trend towards homeownership, with rising home values and declining renter percentages. The city's housing market has shown resilience and growth, with average home prices more than doubling over the past decade. While recent increases in interest rates may pose challenges, the established trend of homeownership and steady property value appreciation suggests a continued robust housing market for Higginsville in the coming years.
