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Rising Home Values and Ownership: Lone Jack, Missouri's Resilient Housing Market
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
Lone Jack, Missouri, a small city in Jackson County with a population of 3,844 as of 2022, has experienced significant changes in homeownership rates and housing prices over the past decade. This community has seen a notable increase in homeownership, coupled with substantial growth in average home prices and fluctuating average rent prices.
The trend in homeownership in Lone Jack has been consistently upward from 2013 to 2022. In 2013, the homeownership rate was 82%, and it steadily increased to reach 92% by 2022. This remarkable 10 percentage point increase coincided with a significant rise in average home prices. In 2013, the average home price in Lone Jack was $183,114, and it more than doubled to $393,248 by 2022. This strong positive correlation between homeownership rates and average home prices suggests that as property values increased, more residents were motivated to invest in homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Lone Jack. From 2013 to 2016, interest rates remained extremely low, ranging from 0.09% to 0.40%. During this period, homeownership in Lone Jack increased from 82% to 88%. The low interest rates likely made mortgages more affordable, encouraging more residents to purchase homes. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, the homeownership rate continued to climb, albeit at a slower pace, reaching 89% in 2019.
The rental market in Lone Jack has experienced an inverse relationship with homeownership trends. As homeownership increased, the percentage of renters decreased from 17% in 2013 to 8% in 2022. Interestingly, average rent prices fluctuated during this period. In 2013, the average rent was $970, peaking at $1,008 in 2016 before declining to $669 in 2019. Despite the decrease in renters, average rent prices rebounded to $987 by 2022. This trend suggests that while fewer residents are renting, those who do are willing to pay higher prices, possibly due to improved rental property quality or increased demand for the limited rental inventory.
In 2023 and 2024, Lone Jack continued to see growth in average home prices. The average home price reached $400,427 in 2023 and further increased to $412,548 in 2024. This upward trend occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the city.
Looking ahead, predictive models suggest that average home prices in Lone Jack will continue to rise over the next five years, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $475,000 to $500,000. Average rent prices are also expected to increase, potentially reaching $1,100 to $1,200 per month by 2029. These projections are based on historical trends and current market conditions.
In summary, Lone Jack has experienced a remarkable increase in homeownership rates, rising from 82% to 92% between 2013 and 2022. This trend has been accompanied by substantial growth in average home prices, more than doubling from $183,114 to $393,248 during the same period. The rental market has contracted, with the percentage of renters decreasing from 17% to 8%, while average rent prices have shown volatility but ultimately increased. The city's housing market has demonstrated resilience, with continued growth in home prices even in the face of rising interest rates in recent years.
