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Rising Home Values and Shifting Ownership in Pomona, 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
Pomona, located in Missouri, is a small community that has experienced fluctuations in its population and housing market over the past decade. The city has seen shifts in homeownership rates and changes in average home and rent prices, reflecting broader economic trends and local market conditions. The homeownership rate in Pomona has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 75%, reaching its peak of 85% in 2016. However, by 2022, it had decreased to 73%. This trend coincides with changes in average home prices, which have shown a significant increase since 2017. The average home price rose from $119,948 in 2017 to $206,780 in 2022, representing a 72% increase over five years. This rapid appreciation in home values may have contributed to the overall decline in homeownership rates, as higher prices potentially made purchasing homes less affordable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Pomona. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively high, peaking at 85% in 2016. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a general downward trend. This aligns with the well-established relationship between lower interest rates and increased homeownership due to more affordable financing options.
The renter population in Pomona has shown an inverse relationship to homeownership trends. The percentage of renters increased from 25% in 2013 to 27% in 2022, with some fluctuations in between. Interestingly, average rent prices have not consistently followed this trend. The average rent peaked at $537 in 2013 and generally decreased over the years, reaching $542 in 2022. This slight increase in rent prices, coupled with the growing renter population, suggests a potential increase in demand for rental properties in the area.
In 2023 and 2024, Pomona experienced further increases in average home prices. The average home price rose to $220,774 in 2023 and further to $224,436 in 2024, representing a 6.8% and 8.5% increase respectively from 2022 levels. This continued appreciation occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in Pomona may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting the growing renter population and overall housing market trends. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and local market conditions.
In summary, Pomona has experienced a gradual shift towards a higher percentage of renters, coupled with significant appreciation in average home values. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with lower interest rates generally corresponding to higher homeownership rates. As the community moves forward, it will likely continue to see evolving dynamics in its housing market, influenced by both local and national economic factors.
