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Rising Home Values and Shifting Ownership in Historic Compton Heights
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Compton Heights, a historic neighborhood in St. Louis, Missouri, renowned for its Victorian-era mansions, has experienced significant changes in homeownership rates and property values over the past decade. The area has witnessed a general trend of increasing average home prices, while homeownership rates have fluctuated.
The relationship between homeownership percentages and average home prices in Compton Heights reveals an interesting dynamic. In 2013, the homeownership rate was 55%, with average home prices at $267,922. As average home prices steadily increased to $348,171 by 2019, homeownership rates also rose to 58%. However, this trend didn't continue uniformly. By 2022, despite average home prices reaching $435,618, the homeownership rate had dropped to 48%, the lowest in the observed period.
Federal interest rates appear to have influenced homeownership rates in Compton Heights. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable around 55%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed more volatility in homeownership rates, culminating in the sharp decline to 48% in 2022.
Renter percentages and average rent prices in Compton Heights have shown a correlation with population changes. In 2013, with a population of 1,420, the renter percentage was 45%, and the average rent was $632. As the population increased to 1,579 in 2019, the renter percentage decreased slightly to 42%, but average rent rose significantly to $935. Interestingly, by 2022, despite a population decrease to 1,267, the renter percentage jumped to 52%, with average rent at $917. This suggests that even with a smaller population, demand for rentals increased, possibly due to rising home prices making homeownership less attainable.
Looking at the most recent data, average home prices in Compton Heights continued to rise in 2023, reaching $443,446. However, in 2024, there was a slight decrease to $440,655. This coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in home prices observed in 2024.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Compton Heights may experience moderate growth, albeit at a slower pace than seen in recent years due to higher interest rates. Average rent prices are likely to continue their upward trajectory, driven by increased demand for rentals in the face of potentially less affordable homeownership options.
In summary, Compton Heights has demonstrated a complex interplay between homeownership rates, average home prices, and rental market dynamics. The neighborhood has seen substantial increases in property values over the past decade, but recent trends suggest a shift towards more renters. The impact of rising interest rates is becoming evident in the slight cooling of home prices in 2024, which may continue to influence the market in the coming years. As the neighborhood evolves, it will be crucial to monitor these trends and their effects on the community's demographic composition and housing affordability.
