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Rising Home Values and Shifting Ownership in Alma, Missouri: A Decade of Housing 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
Alma, Missouri, is a small but vibrant community that has experienced fluctuating 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.
From 2013 to 2022, Alma witnessed a gradual decline in homeownership rates, dropping from 91% to 86%. During this same period, average home prices showed a consistent upward trend. In 2013, the average home price was $80,951, which steadily increased to $180,915 by 2022, representing a significant 123% growth over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made it more challenging for some residents to enter the housing market as owners.
The federal interest rate trends appear to have influenced homeownership rates in Alma. For instance, when interest rates were relatively low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained high, above 80%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a corresponding decline in homeownership rates. This pattern aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable mortgage financing.
Renter percentages in Alma have shown some volatility, increasing from 9% in 2013 to a peak of 24% in 2018, before declining to 14% in 2022. Average rent prices have also fluctuated, rising from $688 in 2013 to a high of $1,000 in 2018, before decreasing to $731 in 2022. The peak in both renter percentage and average rent in 2018 coincided with the city's highest population of 900 residents during the observed period, suggesting that increased demand for rental properties may have driven up prices temporarily.
In 2023 and 2024, Alma's housing market continued to evolve. The average home price reached $189,833 in 2023 and further increased to $192,636 in 2024, indicating a sustained upward trend in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability for prospective owners.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Alma are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices may stabilize or see moderate increases as the rental market adjusts to changing demand and overall economic conditions.
In summary, Alma has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics. The decline in homeownership rates coupled with rising home values points to potential affordability challenges for some residents. The rental market has shown responsiveness to population changes and economic factors. As the city moves forward, balancing housing affordability with property value appreciation will likely be a key consideration for local policymakers and residents alike.
