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Rising Home Values and Ownership in Licking, Missouri: A Decade of Real Estate Trends
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
Licking, Missouri, is a small urban area with a rich history and a dynamic real estate market. Located in Texas County, this city has experienced fluctuating population trends and interesting shifts in homeownership rates over the past decade. The city's housing market has shown a general trend of increasing average home prices, while average rent prices have displayed more volatility.
The homeownership rate in Licking has seen notable changes from 2013 to 2022. In 2013, 66% of residents were homeowners. This rate increased to 73% in 2017, marking the highest level of homeownership during the observed period. However, it subsequently declined to 71% by 2022. Concurrently, average home prices have shown a steady upward trend. In 2012, the average home price was $81,458, which rose significantly to $164,358 by 2022, representing a substantial 101.8% increase over a decade.
Federal interest rates appear to have influenced homeownership rates in Licking. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable around 66-67%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates initially spiked to 73% in 2017 before settling at 71% in 2022. This suggests that residents may have been motivated to purchase homes before interest rates increased further.
Renter percentages in Licking have inversely mirrored homeownership rates, decreasing from 34% in 2013 to 29% in 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $533, which increased to a peak of $986 in 2018, before sharply declining to $510 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may have played a more significant role in determining rental rates.
In 2023 and 2024, Licking's housing market continued to evolve. The average home price in 2023 reached $174,740, a 6.3% increase from 2022. By 2024, it further rose to $177,247, indicating a slower but still positive growth of 1.4% year-over-year. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the city.
Looking ahead, predictive models suggest that average home prices in Licking may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. The average home price could potentially reach around $200,000 by 2029 if current trends persist. Average rent prices, which have been more volatile, are harder to predict but may stabilize or show modest increases, potentially reaching around $550-$600 per month by 2029, assuming economic conditions remain stable.
In summary, Licking has experienced a notable increase in homeownership rates and average home prices over the past decade, with some fluctuations influenced by federal interest rates. The rental market has shown more volatility, with significant swings in average rent prices. As the city moves forward, the interplay between interest rates, housing prices, and demographic shifts will continue to shape its real estate landscape.
