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Rising Home Values and Shifting Ownership Trends in Hillsboro, Missouri: A Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hillsboro, Missouri, a city spanning 3.84 square miles in Jefferson County, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the city witnessed a gradual decline in homeownership rates, dropping from 82% to 77%, while the percentage of renters increased from 17% to 23%. This shift coincided with a substantial rise in average home prices, which increased by 71% from $165,452 in 2013 to $283,399 in 2022.
The relationship between federal interest rates and homeownership rates in Hillsboro shows an interesting pattern. When interest rates were historically low at around 0.1% from 2013 to 2015, homeownership remained stable at 82%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This trend aligns with the general principle that higher interest rates can make home financing less affordable, potentially discouraging some buyers from entering the market.
Renter percentages in Hillsboro have shown an upward trend, increasing from 17% in 2013 to 23% in 2022. This rise in renters coincides with an increase in average rent prices, which grew by 8.2% from $861 in 2013 to $932 in 2022. It's worth noting that the population of Hillsboro also grew during this period, from 7,909 in 2013 to 9,137 in 2022, potentially contributing to increased demand for rental properties.
As of 2024, the average home price in Hillsboro has reached $298,647, continuing the upward trend observed in previous years. This represents a 4.1% increase from the 2022 average of $286,803. Concurrently, the federal interest rate has risen significantly to 5.33% in 2024, up from 1.68% in 2022. This sharp increase in interest rates could potentially impact homeownership rates and market dynamics in the coming years.
Looking ahead, predictive models suggest that average home prices in Hillsboro 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, driven by population growth and the trend towards renting. However, the rate of increase may moderate if homeownership becomes more attractive due to potential future interest rate adjustments.
In summary, Hillsboro has experienced a shift towards renting, with homeownership rates decreasing from 82% to 77% between 2013 and 2022. This trend has occurred alongside substantial increases in average home prices and moderate rises in average rent prices. The recent spike in interest rates to 5.33% in 2024 may further influence these trends, potentially affecting both the rental and homeownership markets in the coming years.
