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Rising Home Values and Ownership Trends in Mexico, Missouri: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Mexico, Missouri, is a vibrant community located in the heart of the state. This small city has experienced interesting shifts in homeownership rates and housing prices over the past decade. From 2013 to 2022, the city saw fluctuations in both owner-occupancy rates and average home prices, with a general trend towards increasing property values and a slight rise in homeownership in recent years.
The relationship between homeownership rates and average home prices in Mexico has been dynamic. In 2013, the owner-occupancy rate was 70%, with an average home price of $78,091. As home prices gradually increased, reaching $86,893 in 2018, the homeownership rate declined to 59%. However, a reversal occurred from 2018 to 2022, with homeownership rising to 68% while average home prices surged to $131,163. This trend suggests that despite rising prices, more residents were able to transition into homeownership, possibly due to improved economic conditions or favorable mortgage terms.
Federal interest rates have played a significant role in shaping homeownership trends in Mexico. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which coincided with relatively stable homeownership rates around 63-64%. As interest rates began to rise more notably from 2017 (1.00%) to 2019 (2.16%), there was a slight dip in homeownership to 59% in 2018. Interestingly, despite interest rates dropping to 0.08% in 2021, homeownership continued to climb, reaching 66% that year and further increasing to 68% in 2022, even as rates rose to 1.68%.
Renter percentages and average rent prices in Mexico have shown their own distinct patterns. In 2013, 30% of residents were renters, with an average rent of $650. As the renter population increased to 41% in 2018, average rents actually decreased to $634, suggesting an expansion of more affordable rental options. By 2022, the renter percentage had decreased to 32%, with average rents stabilizing at $623. This trend indicates that while rental demand fluctuated, landlords maintained competitive pricing to attract tenants in a market with increasing homeownership.
Looking at the most recent data, average home prices in Mexico continued their upward trajectory, reaching $139,684 in 2023 and $145,882 in 2024. This represents a significant 11.2% increase from 2022 to 2024. Simultaneously, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homebuying decisions.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in Mexico to continue rising, potentially reaching around $170,000 by 2029. This projection is based on the consistent upward trend observed since 2014. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of $650-$675 per month by 2029, assuming the stability seen in recent years continues.
In summary, Mexico, Missouri, has demonstrated resilience in its housing market. Despite fluctuations, homeownership rates have rebounded and stabilized, while average home prices have shown steady growth. The rental market has remained competitive, with prices holding relatively steady despite changes in demand. The city's ability to maintain a balance between homeownership and rental options, even in the face of rising property values and changing interest rates, suggests a robust and adaptable housing market poised for continued growth in the coming years.
