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Rising Home Values and Shifting Ownership in Caledonia, Missouri: A Decade of Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Caledonia, located in Missouri, is a small community that has experienced notable demographic and housing market shifts over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership in Caledonia has remained relatively stable, with slight variations over the years. In 2013, the homeownership rate stood at 89%, and by 2022, it had decreased slightly to 84%. During this period, average home prices in the area saw significant growth. From 2016 to 2022, average home prices increased from $120,708 to $204,745, representing a substantial 69.6% rise over six years. This upward trend in home prices, coupled with the slight decrease in homeownership, suggests that while property values have appreciated, it may have become more challenging for some residents to enter the housing market.
The relationship between federal interest rates and homeownership rates in Caledonia shows some correlation. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates stayed relatively high, between 83% and 89%. However, the slight decrease in homeownership from 89% in 2013 to 84% in 2022 coincided with a rise in interest rates from 0.11% in 2013 to 1.68% in 2022, potentially making mortgages less affordable for some buyers.
Renter percentages in Caledonia have shown a modest increase, from 11% in 2013 to 16% in 2022. This trend has been accompanied by fluctuations in average rent prices. Average rent rose from $397 in 2013 to a peak of $718 in 2017, before settling at $653 in 2022. The increase in renter percentages, despite rising rent prices, may be attributed to factors such as changing demographics, job market shifts, or the aforementioned challenges in homeownership affordability.
In 2023 and 2024, Caledonia's housing market continued to evolve. The average home price in 2023 was $204,069, showing a slight decrease from 2022. However, in 2024, prices rebounded to $208,130, indicating ongoing market resilience. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting both homebuyers and renters in the area.
Looking ahead, predictive models suggest that average home prices in Caledonia may continue to rise moderately over the next five years, potentially reaching around $230,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $700 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Caledonia has experienced a slight decrease in homeownership rates alongside significant growth in average home prices. The rental market has seen an increase in the percentage of renters and fluctuating rent prices. The interplay between federal interest rates, housing affordability, and demographic shifts continues to shape the local real estate landscape. As the community moves forward, these trends will likely play a crucial role in determining housing accessibility and market dynamics in Caledonia.
