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Rising Home Values and Shifting Ownership in Calhoun, 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
Calhoun, Missouri, is a small community that has experienced notable demographic and housing market changes over the past decade. The city has seen fluctuations in its homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Calhoun has shown a slight decline over the years, while average home prices have steadily increased. In 2013, the homeownership rate stood at 89%, with an average home price of $81,758. By 2022, the homeownership rate had decreased to 84%, while the average home price had risen significantly to $208,555. This inverse relationship suggests that as home prices increased, some residents may have found it more challenging to enter the housing market or maintain homeownership.
Federal interest rates have played a role in shaping homeownership trends in Calhoun. During periods of lower interest rates, such as from 2013 to 2016 when rates ranged from 0.11% to 0.40%, the homeownership rate remained relatively stable, fluctuating between 87% and 89%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate saw a slight decline, settling at 84% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Calhoun has shown a corresponding increase as homeownership rates declined. In 2013, only 11% of the population were renters, with an average rent of $615. By 2022, the renter population had grown to 16%, while the average rent had decreased to $541. This trend suggests that as home prices increased, more residents may have opted for renting. The decrease in average rent prices, despite the increase in the renter population, could be attributed to various factors such as changes in housing stock or local economic conditions.
Looking at more recent data, in 2023, the average home price in Calhoun reached $209,915, with a further increase to $211,110 in 2024. Interestingly, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers, potentially affecting future homeownership rates in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Calhoun will continue to rise, albeit at a more moderate pace. The rate of increase may slow down due to higher interest rates, potentially reaching around $230,000 to $240,000 by 2029. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching $600 to $650 per month, as demand for rental properties may grow if homeownership becomes less accessible due to higher home prices and interest rates.
In summary, Calhoun has experienced a gradual shift from a predominantly homeowner community to one with a growing renter population. The inverse relationship between rising home prices and declining homeownership rates, influenced by fluctuating interest rates, has been a key trend. The rental market has expanded, with more residents opting to rent, although average rent prices have shown some volatility. Moving forward, the interplay between home prices, interest rates, and rental demand will likely continue to shape the housing landscape in Calhoun.
