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Rising Home Values and Persistent Ownership: Centertown's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Centertown, a small town in Missouri, has experienced notable fluctuations in its housing market over the past decade. The city has maintained a high rate of homeownership, typically above 85%, while average home prices and rent have shown varying trends. This analysis will explore the intricate relationship between ownership rates, housing prices, and rental market dynamics in Centertown.
The homeownership rate in Centertown has remained relatively stable, ranging from 86% to 91% between 2013 and 2022. During this period, average home prices have shown a steady upward trend. In 2012, the average home price was $161,170, which increased to $284,176 by 2022, representing a significant 76% growth over a decade. This rise in home prices did not significantly impact the high homeownership rate, suggesting strong local demand for homeownership despite increasing costs.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), Centertown's homeownership rate peaked at 91%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed slight fluctuations but remained high at 89%, demonstrating the town's resilience in maintaining homeownership levels.
The rental market in Centertown, while small, has shown interesting trends. The percentage of renters has fluctuated between 9% and 14% from 2013 to 2022. Average rent prices have been volatile, dropping from $810 in 2013 to $445 in 2014, then gradually increasing to $664 by 2022. This 49% rise in average rent from 2014 to 2022 occurred while the renter population remained relatively stable, suggesting increased demand or improved quality of rental properties.
In 2023 and 2024, Centertown's housing market continued its upward trajectory. The average home price reached $297,032 in 2023 and further increased to $312,327 in 2024, marking a 10% growth over two years. This rise coincided with significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating a robust local housing market that withstood broader economic pressures.
Looking ahead, predictive models suggest a continued upward trend in both home prices and rent over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $380,000 by 2029. Average rent prices are expected to follow a similar trajectory, possibly rising to around $800 per month in the same period. These projections assume stable economic conditions and continued local demand.
In summary, Centertown's housing market is characterized by persistently high homeownership rates despite rising home prices. The town has demonstrated resilience to fluctuating interest rates, maintaining strong homeownership levels even as rates have increased. The rental market, though smaller, has shown growth in average rents, indicating a potentially competitive rental environment. As the town moves forward, it appears poised for continued growth in both home values and rental prices, reflecting ongoing demand in this small Missouri community.
