Loading Content...
Rising Home Values and Ownership in Benton Park: A Historic St. Louis Neighborhood's Real Estate Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Benton Park, a vibrant neighborhood in St. Louis, Missouri, has experienced dynamic shifts in its real estate landscape over the past decade. This historic district, known for its charming 19th-century architecture and local breweries, has seen fluctuations in homeownership rates, average home prices, and average rent prices that reflect broader economic trends and local market conditions.
The relationship between homeownership rates and average home prices in Benton Park reveals an interesting pattern. In 2013, the homeownership rate was 52%, with average home prices at $146,240. As average home prices steadily increased, reaching $204,154 by 2019, the homeownership rate slightly decreased to 48%. However, this trend reversed in subsequent years. By 2022, the homeownership rate rose to 56%, while average home prices continued to climb, reaching $264,004. This suggests that despite rising home values, local residents found ways to enter the housing market, possibly due to other favorable economic factors.
Federal interest rates have played a significant role in shaping homeownership trends in Benton Park. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates in Benton Park remained relatively stable, ranging from 52% to 54%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, the homeownership rate in Benton Park showed resilience, maintaining at 51%. This suggests that local factors and the neighborhood's desirability may have offset the potential negative impact of rising interest rates on homeownership.
The rental market in Benton Park has also experienced notable changes. In 2013, the renter-occupied percentage was 48%, with an average rent of $1,130. As the population grew from 3,821 in 2013 to 4,043 in 2019, the renter percentage increased to 52%, and average rent prices surged to $1,628. This trend indicates a growing demand for rental properties in the area, possibly driven by an influx of young professionals or students attracted to the neighborhood's amenities. However, by 2022, the rental percentage decreased to 44%, with average rent at $1,105, suggesting a shift back towards homeownership or potentially reflecting the impact of the COVID-19 pandemic on urban rental markets.
Looking at the most recent data, average home prices in Benton Park continued their upward trajectory, reaching $277,317 in 2023 and $279,984 in 2024. This represents a significant increase from previous years, indicating strong demand and appreciation in the neighborhood's real estate market. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homebuying activity and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Benton Park will continue to appreciate, albeit at a more moderate pace. The current high interest rate environment may slow down the rate of price growth, but the neighborhood's desirability and limited housing supply could sustain upward pressure on prices. For rental prices, we expect a gradual increase over the next five years, driven by inflation and ongoing demand for housing in the area. However, the rate of increase may be tempered by new housing developments and potential shifts in work-from-home policies affecting urban living preferences.
In summary, Benton Park has demonstrated resilience and attractiveness as a residential area, with homeownership rates rebounding in recent years despite rising home prices. The neighborhood has weathered changes in federal interest rates and shifts in rental demand, maintaining its appeal to both homeowners and renters. As we look to the future, Benton Park is poised to continue its trajectory as a desirable St. Louis neighborhood, with moderate growth expected in both home values and rental prices.
