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Rising Home Values and Ownership in Steele, 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
Steele, Missouri, is a small urban community that has experienced significant demographic shifts over the past decade. The city has seen a gradual increase in homeownership rates alongside fluctuating average home prices and rent costs, reflecting the dynamic nature of its housing market.
The homeownership rate in Steele has shown a steady upward trend, rising from 52% in 2013 to 55% in 2022. This increase in ownership coincided with a substantial rise in average home prices. From 2019 to 2022, average home prices in the city grew from $90,640 to $105,218, representing a 16.1% increase over just three years. This positive correlation suggests that despite rising prices, more residents were able to enter the housing market as owners.
Federal interest rates play a crucial role in homeownership trends. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.08% to 1.68%. These low rates likely contributed to the increase in homeownership by making mortgages more affordable for potential buyers. The rise in ownership percentage from 52% to 55% during this period aligns with the general principle that lower interest rates encourage homeownership.
Conversely, the percentage of renters in Steele decreased from 48% in 2013 to 45% in 2022. Despite this decline, average rent prices showed an overall upward trend. The average rent increased from $533 in 2013 to $701 in 2022, a significant 31.5% rise. This increase in rent prices occurred even as the city's population decreased from 3,167 in 2013 to 2,368 in 2022, suggesting that factors beyond population growth were influencing rental costs.
In 2023 and 2024, Steele's housing market continued to evolve. The average home price reached $108,586 in 2023, the highest point in the available data. However, in 2024, there was a slight decline to $103,764. This recent dip coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting home affordability and buyer demand.
Looking ahead, predictive models suggest that average home prices in Steele may experience moderate growth over the next five years, potentially reaching around $115,000 by 2029. Rent prices are also expected to continue their upward trajectory, potentially averaging around $800 per month by 2029. These projections assume a continuation of current economic conditions and local market trends.
In summary, Steele has seen a notable increase in homeownership rates despite rising home prices, likely supported by low interest rates through 2022. The rental market has experienced significant price increases even as the renter population decreased. Recent data shows a slight cooling in the housing market, possibly influenced by rising interest rates. The coming years are expected to bring continued, though moderate, growth in both home prices and rents, shaping the future of Steele's housing landscape.
