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Rising Home Values and Shifting Ownership in Scenic Eureka, Missouri
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
Eureka, Missouri, a city in St. Louis County, has experienced significant growth and changes in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices in Eureka, providing insights into the city's real estate dynamics.
Homeownership in Eureka has remained relatively stable, with a slight decrease from 87% in 2013 to 81% in 2022. During this period, average home prices have shown a consistent upward trend, rising from $220,055 in 2013 to $365,548 in 2022, representing a 66% increase over nine years.
The relationship between federal interest rates and homeownership rates in Eureka appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates in Eureka remained high, above 82%. However, as interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership rates, dropping to 80% in 2017 and stabilizing around 81-82% in subsequent years.
Renter percentages in Eureka have shown a gradual increase from 11% in 2013 to 19% in 2022. This trend coincides with a rise in average rent prices, which increased from $854 in 2013 to $941 in 2022. The growth in the renter population may be attributed to the city's overall population growth, which rose from 10,154 in 2013 to 12,831 in 2022, a 26% increase. This population growth likely contributed to the demand for rental properties.
In 2023, the average home price in Eureka reached $378,746, with federal interest rates at 5.02%. The trend continued into 2024, with average home prices rising to $386,632 and interest rates further increasing to 5.33%. These figures indicate a continued upward trajectory in both home prices and interest rates.
Looking ahead, based on the historical data and current trends, we can project the following 5-year forecasts: Average home prices are expected to continue their upward trend, potentially reaching around $450,000 by 2029, assuming a similar growth rate to recent years. Average rent prices may stabilize or experience moderate growth, potentially reaching approximately $1,100 to $1,200 per month by 2029, considering the recent fluctuations and overall upward trend.
In summary, Eureka, Missouri has demonstrated a robust housing market with steadily increasing home values and a slight shift towards more renters. The city's growing population and economic factors have contributed to these trends. While homeownership remains high, the gradual increase in renters suggests a diversifying housing market. The continued rise in home prices, coupled with higher interest rates, may present both opportunities and challenges for potential homebuyers and investors in the coming years.
