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Rising Home Values and Ownership Trends in Southside, Springfield: A Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Southside neighborhood in Springfield, Missouri, has experienced significant changes in its real estate market over the past decade. This analysis focuses on the fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
Homeownership rates in Southside have varied between 51% and 62% from 2013 to 2022. The peak ownership rate of 62% occurred in 2020, coinciding with a substantial increase in average home prices. From 2010 to 2022, average home prices in the neighborhood rose steadily, with a notable 35% jump from $189,425 in 2020 to $256,162 in 2022. This rapid appreciation in home values may have influenced homeownership rates, as some residents potentially capitalized on the market by selling their properties.
Federal interest rates have played a crucial role in shaping homeownership trends in Southside. The period from 2010 to 2021 saw historically low interest rates, often below 1%. This environment of affordable financing likely contributed to the relatively stable homeownership rates observed during this time, generally fluctuating between 51% and 55%. The spike in homeownership to 62% in 2020 coincided with interest rates dropping to 0.38%, potentially encouraging more buyers to enter the market.
Renter percentages in Southside have inversely mirrored homeownership rates, ranging from 38% to 49% between 2013 and 2022. Average rent prices have shown a general upward trend, increasing from $709 in 2013 to $849 in 2022, with a notable peak of $1,028 in 2021. The rise in rent prices, particularly the sharp increase in 2020 and 2021, may have been influenced by the growing population, which reached 7,328 in 2015 before settling at 6,493 in 2022. The temporary spike in rent prices could have made renting less attractive, potentially contributing to the increase in homeownership observed in 2020.
In 2023 and 2024, average home prices in Southside continued to rise, reaching $267,047 in 2023 and $273,957 in 2024. This represents a 7% increase from 2022 to 2024, indicating a slower but still upward trajectory in home values. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Southside may continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $300,000 to $320,000, assuming current economic conditions persist. Average rent prices are also expected to continue their upward trend, potentially reaching $900 to $950 per month within the next five years, barring any significant economic shifts or local market disruptions.
In summary, the Southside neighborhood has demonstrated resilience and growth in its real estate market. The interplay between homeownership rates, average home prices, and average rent prices reflects a dynamic market responding to broader economic factors and local demand. The recent slowdown in price appreciation, coupled with rising interest rates, suggests a potential stabilization of the market, which could influence future homeownership trends and rental demand in this Springfield community.
