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Rising Home Values and Ownership in Gerald, Missouri: A Decade of Housing Market Dynamics
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
Gerald, located in Missouri, is a small urban area with a population of 2,511 as of 2022. The city has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
Homeownership rates in Gerald have shown a gradual increase from 2013 to 2022. In 2013, the homeownership rate was 80%, which rose to 84% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. The average home price in Gerald rose from $126,907 in 2013 to $219,461 in 2022, representing a 72.9% increase over this period. The most substantial year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $165,871 to $195,428, a 17.8% rise in a single year.
Federal interest rates have played a role in shaping homeownership trends in Gerald. From 2013 to 2016, interest rates remained below 0.5%, which likely contributed to the steady homeownership rate of around 80%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly to 82%, possibly due to buyers rushing to purchase homes before rates climbed further. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a continued increase in homeownership to 83% in 2021 and 84% in 2022, as lower borrowing costs made homeownership more accessible.
Renter percentages in Gerald have inversely mirrored the homeownership trend, decreasing from 22% in 2017 to 16% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $620, which increased to a peak of $793 in 2018 before declining to $662 in 2019. Since then, rent prices have gradually increased, reaching $720 in 2022. The fluctuations in rent prices don't show a strong correlation with the declining renter percentage, suggesting other factors such as local economic conditions or housing supply may be influencing the rental market.
In 2023, the average home price in Gerald reached $227,573, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $235,768, while interest rates have slightly risen to 5.33%. These figures indicate a continuing upward trend in home values despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Gerald may continue to rise over the next five years, potentially reaching around $275,000 by 2029 if current trends persist. Rent prices are also expected to increase, possibly approaching $850 per month by 2029. However, these projections are subject to change based on various economic factors and local market conditions.
In summary, Gerald has experienced a steady increase in homeownership rates over the past decade, accompanied by significant growth in average home prices. The rental market has seen a decrease in the proportion of renters and fluctuating rent prices. The relationship between federal interest rates and homeownership rates has been complex, with recent low rates contributing to increased homeownership despite rising home prices. As the city moves forward, continued monitoring of these trends will be crucial for understanding the evolving housing market dynamics in Gerald.
