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Rising Home Values and Ownership in South Hampton: A Decade of Change
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
South Hampton, a vibrant neighborhood in St. Louis, Missouri, has experienced significant changes in homeownership and property values over the past decade. This analysis examines the trends and factors influencing these changes, highlighting the neighborhood's evolving real estate landscape. The homeownership rate in South Hampton has shown a notable increase, rising from 59% in 2018 to 71% in 2022. This upward trend coincides with a substantial increase in average home prices, which grew from $170,958 in 2018 to $226,363 in 2022, representing a 32.4% increase over four years. The correlation between rising homeownership and increasing home values suggests growing demand for property in the neighborhood, potentially driven by its desirability and local economic factors.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2018 to 2020, interest rates decreased from 1.83% to 0.38%, likely contributing to the increase in homeownership from 59% to 66% during this period. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. The continued low rates in 2021 (0.08%) corresponded with a further increase in homeownership to 70%, demonstrating the strong inverse relationship between interest rates and homeownership rates.
Renter percentages in South Hampton have conversely decreased, dropping from 41% in 2018 to 29% in 2022. Average rent prices have fluctuated during this period, starting at $845 in 2018, rising to $985 in 2021, before decreasing to $904 in 2022. The peak in rent prices in 2021 may have influenced some renters to transition to homeownership, especially given the low interest rates at the time. The population has also varied, reaching a high of 7,623 in 2020 before settling at 7,440 in 2022, which could have impacted rental demand and pricing.
In 2023, the average home price in South Hampton reached $240,043, with federal interest rates rising to 5.02%. As of 2024, the average home price has further increased to $250,373, while interest rates have climbed to 5.33%. These figures indicate a continued upward trend in property values despite higher borrowing costs, suggesting strong underlying demand for homes in the neighborhood.
Looking ahead, predictive models suggest that average home prices in South Hampton may continue to rise over the next five years, potentially reaching around $280,000 by 2029. This projection is based on the consistent upward trend observed since 2018. Average rent prices are also expected to increase, potentially surpassing $1,000 per month within the same timeframe, assuming the neighborhood maintains its appeal and economic growth continues.
In summary, South Hampton has experienced a significant increase in homeownership rates and property values over the past decade. The inverse relationship between federal interest rates and homeownership rates has been evident, with lower rates corresponding to higher ownership percentages. Despite recent increases in interest rates, home prices continue to rise, indicating strong demand for property in the area. As the neighborhood evolves, it will be important to monitor how these trends impact the community's demographics and overall character.
