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Rising Home Values and Ownership in Pilot Grove: 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
Pilot Grove, a small city in Missouri, has experienced fluctuating demographic and housing trends over the past decade. This analysis explores the relationship between homeownership rates, average home prices, and average rent prices, providing insights into the city's real estate market dynamics.
Homeownership rates in Pilot Grove have shown a generally upward trend from 2013 to 2022. In 2013, the homeownership rate was 71%, which increased to 76% by 2022. This 5 percentage point increase indicates a growing preference for homeownership in the city. While specific average home price data for earlier years is not available, the trend suggests a favorable environment for home buying.
The relationship between federal interest rates and homeownership rates in Pilot Grove appears to follow the well-established trend of lower interest rates encouraging homeownership. For instance, as federal interest rates remained low from 2013 to 2020 (ranging from 0.08% to 0.4%), homeownership rates in Pilot Grove increased from 71% to 76%. This correlation suggests that the low-interest environment may have contributed to making home purchases more accessible for residents.
Renter percentages in Pilot Grove have shown a corresponding decrease as homeownership rates increased. In 2013, the renter-occupied percentage was 28%, which decreased to 23% by 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $629, which increased to $649 in 2014 but then experienced a general decline, reaching $549 in 2018. However, there was a subsequent increase to $682 by 2022. These fluctuations in rent prices, combined with the decreasing renter percentage, suggest a complex rental market influenced by various factors, including population changes and housing availability.
In 2023 and 2024, Pilot Grove saw a significant increase in average home prices. The average home price in 2023 was $215,429, rising to $217,369 in 2024. This represents a 0.9% increase in just one year. Concurrently, federal interest rates rose from 5.02% in 2023 to 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, based on recent trends, we can predict that average home prices in Pilot Grove may continue to rise moderately over the next five years, potentially reaching around $230,000 by 2029. Average rent prices might also see a gradual increase, potentially approaching $750 per month by 2029, assuming the current trajectory continues.
In summary, Pilot Grove has experienced a notable increase in homeownership rates from 2013 to 2022, coinciding with a period of low federal interest rates. The recent surge in home prices in 2023 and 2024, coupled with rising interest rates, marks a new phase in the city's housing market. These trends suggest a growing preference for homeownership in Pilot Grove, potentially driven by favorable economic conditions and changing resident preferences.
