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Rising Home Values and Shifting Ownership: Amazonia's Housing Market Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Amazonia, located in Missouri, has experienced significant changes in its housing market over the past decade. This small community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Amazonia has shown a gradual decline from 2013 to 2022. In 2013, 91% of residents owned their homes, but by 2022, this figure had decreased to 82%. Conversely, the average home prices have generally trended upward during this period. In 2013, the average home price was $86,569, which rose to $164,992 by 2022, representing a substantial increase of 90.6% over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Amazonia remained relatively stable, ranging from 87% to 91%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, we observed a corresponding decline in homeownership rates, dropping to 82% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in Amazonia has increased from 9% in 2013 to 18% in 2022. This rise in renters coincides with a significant increase in average rent prices. In 2013, the average rent was $563, which escalated to $1,169 by 2022, marking a 107.6% increase. The growing renter population and rising rent prices may be attributed to the increasing difficulty of homeownership due to rising home prices and interest rates. Additionally, the village's population grew from 864 in 2013 to 1,479 in 2022, potentially contributing to increased demand for rental properties.
In 2023 and 2024, the housing market in Amazonia continued to evolve. The average home price in 2023 was $168,738, showing a slight increase from 2022. In 2024, it further rose to $171,621. Concurrently, federal interest rates reached 5.02% in 2023 and 5.33% in 2024, marking a significant increase from previous years. These higher interest rates could potentially impact future homeownership trends in the village.
Looking ahead, predictive models suggest that average home prices in Amazonia may continue to rise moderately over the next five years, potentially reaching around $190,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Amazonia has experienced a gradual shift towards renting, with homeownership rates declining as both home prices and rent costs have significantly increased. The interplay between federal interest rates, population growth, and housing affordability has shaped these trends. As the community continues to grow and adapt, these housing market dynamics will likely play a crucial role in shaping the village's future development and demographics.
