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Rising Home Values and Shifting Ownership in Belton, 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
Belton, Missouri, located in Cass County, is a vibrant city with a rich history dating back to the 1800s. Known for its small-town charm and proximity to Kansas City, Belton has experienced steady growth over the years. The city has seen fluctuations in homeownership rates and significant increases in both average home prices and average rent prices since 2010.
The homeownership rate in Belton has shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate stood at 69%, but by 2022, it had decreased to 64%. This trend coincides with a substantial increase in average home prices. In 2010, the average home price was $123,649, and it rose steadily to reach $235,832 by 2022, representing a 90.7% increase over 12 years. The most significant jump occurred between 2020 and 2021, with average home prices rising from $182,938 to $209,169, a 14.3% increase in just one year.
Federal interest rates have played a role in homeownership trends in Belton. From 2010 to 2015, interest rates remained very low, hovering around 0.1% to 0.18%. During this period, homeownership rates remained relatively stable. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in Belton has increased from 30% in 2013 to 36% in 2022, inversely mirroring the decline in homeownership. Average rent prices have also shown an upward trend, albeit with some fluctuations. In 2013, the average rent was $1,110, and it increased to $1,094 by 2022. The highest average rent was recorded in 2021 at $1,238. The city's population growth from 24,489 in 2010 to 25,838 in 2022 may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023, the average home price in Belton reached $240,669, and in 2024, it further increased to $245,559. This continued upward trend in home prices occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership rates in the city.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in Belton will continue to rise over the next five years, potentially reaching around $275,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. However, the rate of increase may slow down due to the higher interest rates and potential market stabilization.
In summary, Belton has experienced a shift towards a higher percentage of renters and lower homeownership rates over the past decade. This trend has been accompanied by significant increases in both average home prices and average rent prices. The interplay between federal interest rates, population growth, and housing market dynamics has shaped these trends, and they are likely to continue influencing Belton's housing landscape in the coming years.
