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Rising Home Values and Shifting Ownership in Oakland, Missouri: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Oakland, Missouri, a small city with a population of 1,633 in 2022, has experienced significant changes in its housing market over the past decade. This city, known for its suburban charm and proximity to St. Louis, has seen fluctuations in homeownership rates and housing prices that reflect both local and national economic trends.
The homeownership rate in Oakland has shown a general upward trend from 2013 to 2017, peaking at 87% in 2017. However, this trend reversed in recent years, declining to 73% by 2022. Concurrently, average home prices have steadily increased from $263,497 in 2010 to $414,484 in 2022, representing a 57% increase over this period. This inverse relationship between homeownership rates and home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Oakland. The period of historically low interest rates from 2010 to 2016, ranging from 0.1% to 0.4%, coincided with the increase in homeownership rates. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a corresponding decline in homeownership rates. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in Oakland have shown an inverse relationship to homeownership rates, increasing from 13% in 2017 to 27% in 2022. Average rent prices have fluctuated during this period, with notable increases from $1,297 in 2013 to $1,631 in 2017, followed by a decrease to $1,224 in 2022. The recent increase in renter percentages, despite relatively stable rent prices, may indicate a shift in housing preferences or economic constraints forcing more residents into the rental market.
In 2023 and 2024, Oakland's housing market continued to evolve. Average home prices rose to $431,283 in 2023 and further to $443,775 in 2024, marking a 7% increase over two years. This growth occurred despite a significant increase in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the city.
Looking ahead, predictive models suggest that average home prices in Oakland may continue to rise over the next five years, potentially reaching around $500,000 by 2029 if current trends persist. Rent prices, which have been more volatile, are projected to stabilize and potentially increase moderately, possibly reaching an average of $1,300 to $1,400 per month in the same timeframe.
In summary, Oakland has experienced a shift from high homeownership rates to an increasing renter population, coinciding with rising home prices and fluctuating rent costs. The interplay between federal interest rates, housing affordability, and changing demographics will likely continue to shape Oakland's housing market in the coming years, presenting both challenges and opportunities for residents and policymakers alike.
