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Rising Home Values and Shifting Ownership in Adrian, Missouri: A Decade of Housing Market Dynamics
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
Adrian, Missouri, is a small community that has experienced fluctuations in population and housing dynamics over the past decade. The city has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Adrian has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 76%, which decreased to 69% by 2022. This decline coincided with a significant increase in average home prices. In 2013, the average home price was $102,808, which rose steadily to $225,057 by 2022, representing a 119% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents, particularly as the rate of price increase outpaced wage growth in many areas.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained very low, ranging from 0.11% to 0.40%. During this period, homeownership rates in Adrian decreased slightly from 76% to 66%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized and even slightly increased to 72% by 2019. This suggests that while low interest rates can make mortgages more affordable, other factors such as local economic conditions and housing supply also influence homeownership rates.
The percentage of renters in Adrian increased from 24% in 2013 to 31% in 2022, inversely mirroring the homeownership trend. Average rent prices also showed an upward trend, rising from $662 in 2013 to $717 in 2022, an increase of about 8.3%. This relatively modest increase in rent prices compared to the sharp rise in home prices may have made renting a more attractive option for some residents. The city's population fluctuated during this period, peaking at 2,911 in 2013 and settling at 2,702 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, Adrian saw a slight decrease in average home prices, from $225,057 in 2022 to $224,544 in 2023, followed by a small increase to $228,174 in 2024. This stabilization occurs amidst significantly higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher rates may have contributed to the slowing of home price growth.
Looking ahead, predictive models suggest that average home prices in Adrian may continue to see moderate growth over the next five years, albeit at a slower pace than the rapid increases observed from 2013 to 2022. Average rent prices are also expected to rise gradually, potentially outpacing recent years' growth rates as demand for rental properties may increase if homeownership becomes less affordable due to higher interest rates.
In summary, Adrian has experienced a shift towards more renting and less homeownership over the past decade, driven by substantial increases in home prices and influenced by changing interest rates. The recent stabilization of home prices and high interest rates may signal a new phase in the local housing market, potentially affecting future homeownership rates and rental demand.
