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Rising Home Values and Shifting Ownership in Lockwood, Missouri: A Decade of Housing Market Evolution
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
Lockwood, located in Missouri, is a small but dynamic community that has experienced fluctuations in its population and housing market over the past decade. The city has seen interesting shifts in homeownership rates and housing costs, reflecting broader economic trends and local developments. The homeownership rate in Lockwood has shown some variability over the years, with a general trend of slight decline. In 2013, the homeownership rate was 67%, which increased to a peak of 72% in 2014. However, by 2022, it had decreased to 65%. This downward trend in homeownership coincides with a significant increase in average home prices. From 2016 to 2022, average home prices in Lockwood rose from $78,966 to $126,436, representing a substantial 60% increase over six years.
The relationship between federal interest rates and homeownership rates in Lockwood follows some expected patterns. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%) coincided with relatively high homeownership rates of 67% to 72%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 65%, suggesting that higher borrowing costs may have impacted affordability for potential buyers.
Renter percentages in Lockwood have generally increased as homeownership rates declined. The proportion of renters rose from 28% in 2014 to 35% in 2022. This trend aligns with the increase in average rent prices, which grew from $605 in 2013 to $880 in 2022, a 45% increase. The rise in both renter percentages and rent prices could be attributed to factors such as population growth (from 1,619 in 2010 to 1,747 in 2022) and possibly a shift towards more rental properties in the city.
In 2023 and 2024, Lockwood's housing market continued to evolve. Average home prices reached $133,207 in 2023 and further increased to $145,514 in 2024, representing a 15% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for many prospective homebuyers.
Looking ahead, predictive models suggest that both average home prices and rent prices in Lockwood are likely to continue their upward trajectory over the next five years. Home prices could potentially reach around $170,000 to $180,000 by 2029, while average rent prices might approach $1,000 to $1,100 per month. These projections are based on the consistent growth patterns observed in recent years and assume relatively stable economic conditions.
In summary, Lockwood has experienced a gradual shift towards more renters and higher housing costs over the past decade. The inverse relationship between homeownership rates and home prices, coupled with the impact of fluctuating interest rates, has shaped the city's housing market. As the community continues to grow and evolve, these trends in housing affordability and ownership patterns will likely play a crucial role in shaping Lockwood's future development and demographic composition.
