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Rising Home Values and Stable Ownership: Cape Girardeau's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cape Girardeau, Missouri, a vibrant city along the Mississippi River, is known for its rich history and as the home of Southeast Missouri State University. Over the past decade, the city has experienced interesting shifts in homeownership rates and housing prices. The overall trend shows a slight decrease in homeownership, while average home prices have generally increased, particularly in recent years. Average rent prices have remained relatively stable with minor fluctuations.
Analyzing the relationship between homeownership rates and average home prices reveals some intriguing patterns. In 2013, the homeownership rate was 59%, with an average home price of $131,128. By 2022, the homeownership rate had decreased slightly to 57%, while the average home price had risen significantly to $200,121. This indicates that despite the increasing home values, there hasn't been a substantial shift towards renting, suggesting a resilient desire for homeownership in Cape Girardeau.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained very low (below 0.5%), coinciding with stable homeownership rates around 57%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), there was a slight dip in homeownership to 56% in 2017, but it rebounded to 57% in 2018. The extremely low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) corresponded with an increase in homeownership to 58% in 2020 and 60% in 2021, demonstrating how lower interest rates can encourage home buying.
Renter percentages and average rent prices have shown interesting trends as well. In 2013, 41% of residents were renters, with an average rent of $878. By 2022, the renter percentage had increased slightly to 42%, while the average rent had decreased to $852. This suggests that despite a growing population (from 44,704 in 2013 to 45,699 in 2022), rental prices have remained relatively affordable, potentially due to new housing developments or a balanced rental market.
Looking at the most recent data, average home prices in Cape Girardeau continued to rise in 2023 and 2024, reaching $204,737 and $208,080 respectively. This upward trend persists despite the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a strong housing market that has maintained growth even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Cape Girardeau will continue to increase, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach around $230,000 to $240,000. Average rent prices are expected to remain relatively stable, possibly increasing slightly to around $870-$890 per month, assuming current trends continue.
In summary, Cape Girardeau's housing market has shown resilience and growth over the past decade. Despite slight fluctuations in homeownership rates, there remains a strong preference for owning homes in the city. The significant increase in average home prices, even in the face of rising interest rates, suggests a robust demand for housing. Meanwhile, the rental market has remained stable, providing affordable options for those not ready or able to purchase homes. These trends point to a diverse and adaptable housing market in Cape Girardeau, well-positioned to meet the needs of its growing population in the coming years.
