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Rising Home Values and Ownership Trends in Chillicothe, Missouri: The Birthplace of Sliced Bread
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
Chillicothe, a city in Missouri, has experienced notable shifts in its housing market over the past decade. Known for its rich agricultural heritage and as the birthplace of sliced bread, Chillicothe has seen fluctuations in homeownership rates, average home prices, and average rent prices. The city has generally maintained a higher proportion of homeowners compared to renters, while both housing and rent prices have shown an upward trend in recent years.
The homeownership rate in Chillicothe has experienced some variation over time, with a general declining trend from 2013 to 2019, followed by a slight recovery. In 2013, the homeownership rate stood at 68%, gradually decreasing to 62% by 2019. This decline coincided with a steady increase in average home prices, rising from $102,676 in 2013 to $112,175 in 2019. However, from 2020 to 2022, there was a reversal in this trend, with homeownership rates increasing to 66% while average home prices continued to climb, reaching $149,267 in 2022.
Federal interest rates have played a significant role in shaping homeownership trends in Chillicothe. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which likely contributed to the relatively high homeownership rates during this time. As interest rates began to rise gradually from 2016 onwards, reaching 2.16% in 2019, we observed a corresponding decrease in homeownership rates. The subsequent drop in interest rates to 0.08% in 2021 aligns with the recovery in homeownership rates to 66% by 2022, demonstrating the inverse relationship between interest rates and homeownership.
Renter percentages in Chillicothe have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 32% in 2013 to a peak of 38% in 2019, before declining slightly to 34% in 2022. Average rent prices have shown a consistent upward trend, rising from $359 in 2013 to $743 in 2022. This significant increase in average rent prices, particularly the sharp rise from $626 in 2020 to $770 in 2021, may have contributed to the slight decrease in the renter population percentage in recent years.
In 2023 and 2024, Chillicothe's housing market continued to evolve. The average home price reached $156,623 in 2023 and further increased to $161,704 in 2024, marking a continuation of the upward trend observed in previous years. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, representing the highest rates in over a decade. These higher interest rates may impact future homeownership trends and affordability in the city.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Chillicothe are likely to continue their upward trajectory over the next five years, potentially reaching around $180,000 to $190,000 by 2029. Average rent prices may also continue to rise, albeit at a potentially slower rate, possibly reaching $800 to $850 per month in the same timeframe. However, these projections could be influenced by various factors, including economic conditions, local development, and changes in federal interest rates.
In summary, Chillicothe's housing market has demonstrated resilience and growth over the past decade. The city has maintained a predominance of homeowners despite fluctuations in ownership rates. Both average home prices and rent prices have shown substantial increases, particularly in recent years. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As Chillicothe moves forward, these trends suggest a continuing evolution in its housing landscape, with potential implications for affordability and demographic composition.
