Loading Content...
Rising Home Values and Shifting Ownership in Arnold, Missouri: A Decade of Suburban 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
Arnold, Missouri, a suburban city in Jefferson County, is situated just south of St. Louis. Known for its scenic parks and family-friendly atmosphere, Arnold has experienced notable changes in its housing market over the past decade. The city has witnessed a gradual decrease in homeownership rates, while average home prices and average rent prices have generally increased, reflecting evolving dynamics in the local real estate landscape.
From 2013 to 2022, Arnold saw a significant decline in homeownership rates, falling from 83% to 78%. During this same period, average home prices in the city showed a substantial increase. In 2013, the average home price in Arnold was $147,728. By 2022, this figure had risen to $230,071, representing a 55.7% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
The fluctuations in federal interest rates have likely influenced Arnold's homeownership trends. In 2013, when homeownership was at 83%, the federal interest rate was just 0.11%. As interest rates began to rise, particularly from 2016 onwards, homeownership rates in Arnold started to decline more noticeably. By 2018, with interest rates at 1.83%, homeownership had dropped to 75%. This trend aligns with the general principle that higher interest rates can make mortgages more expensive, potentially deterring some potential buyers from entering the market.
As homeownership rates declined, the percentage of renters in Arnold increased from 17% in 2013 to 22% in 2022. Average rent prices in the city have shown some volatility during this period. In 2013, the average rent was $924, rising to a peak of $1,044 in 2018 before declining to $988 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a dynamic rental market responding to supply and demand factors, as well as broader economic conditions.
Looking at the most recent data, the average home price in Arnold continued its upward trajectory, reaching $239,298 in 2023 and $248,013 in 2024. This represents a further 7.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the pace of home price appreciation and impact affordability for prospective buyers.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Arnold will continue to rise, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand. However, the rate of increase may be tempered by economic factors and local market conditions.
In summary, Arnold has experienced a clear shift towards a higher proportion of renters over the past decade, coinciding with substantial increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As the city moves forward, these trends suggest a continuing evolution of Arnold's housing landscape, with potential implications for affordability and community demographics.
