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Rising Home Values and Ownership in Hermann, Missouri: A German Heritage City's Housing Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hermann, located in Missouri, is known for its rich German heritage and thriving wine industry. The city has experienced notable shifts in homeownership rates and housing prices over the past decade. From 2013 to 2022, the percentage of owner-occupied homes increased significantly, while average home prices and average rent prices showed varying trends.
The homeownership rate in Hermann has seen a steady increase from 70% in 2013 to 79% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2017, the average home price was $116,102, which rose to $188,345 by 2022, representing a 62% increase over five years. This trend suggests that despite rising home prices, more residents were able to purchase homes, possibly due to favorable economic conditions or increased local prosperity.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Hermann increased from 70% to 73%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 75% in 2019. This trend continued even as interest rates fluctuated, with homeownership reaching 79% in 2022 when the federal interest rate was 1.68%.
As homeownership increased, the percentage of renters in Hermann decreased from 30% in 2013 to 21% in 2022. Interestingly, average rent prices fluctuated during this period. The average rent was $600 in 2013, peaked at $640 in 2018, and then decreased to $629 in 2022. This trend suggests that despite the decrease in the renter population, rent prices remained relatively stable, possibly due to factors such as housing quality improvements or changes in local economic conditions.
In 2023 and 2024, Hermann saw further increases in average home prices. The average home price reached $193,963 in 2023 and $200,023 in 2024, continuing the upward trend observed in previous years. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in Hermann may continue to rise over the next five years, potentially reaching around $230,000 by 2029. Average rent prices are expected to follow a more moderate upward trend, possibly increasing to approximately $700 per month in the same timeframe.
In summary, Hermann has experienced a significant increase in homeownership rates from 2013 to 2022, accompanied by rising average home prices. Despite fluctuations in federal interest rates, the trend towards homeownership remained strong. The rental market saw a decrease in the percentage of renters, with relatively stable average rent prices. The city's housing market has shown resilience and growth, with continued increases in average home prices in 2023 and 2024, suggesting a robust local economy and sustained demand for housing in this historic Missouri city.
