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Rock Hill, Missouri: Rising Home Values and Ownership Rates Amid Market Fluctuations
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
Rock Hill, a small city in Missouri, is located southwest of St. Louis with a population of 4,576 in 2022 and an area of 1.1 square miles. This suburban community, closely connected to the larger metropolitan area, has experienced significant changes in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
Homeownership in Rock Hill has shown a fluctuating trend. In 2013, the homeownership rate was 76%, rising to a peak of 88% in 2016 and 2017. By 2022, it had decreased to 81%. Concurrently, average home prices in Rock Hill have demonstrated a steady upward trajectory. From $164,990 in 2010, average home values increased to $270,299 in 2022, representing a substantial 63.8% growth over 12 years.
The relationship between federal interest rates and homeownership rates in Rock Hill shows some correlation. During the period of historically low interest rates from 2013 to 2016, when rates remained below 0.5%, Rock Hill saw its highest homeownership rates, peaking at 88%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a gradual decline in homeownership rates to 81%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in Rock Hill have inversely mirrored the homeownership trends. The proportion of renters decreased from 24% in 2013 to a low of 12% in 2016 and 2017, before rising again to 19% by 2022. Average rent prices have shown some volatility but with an overall downward trend in recent years. From a high of $1,183 in 2015, average rents decreased to $1,001 in 2022, representing a 15.4% decline. This trend is noteworthy, especially considering the city's relatively stable population during this period.
In 2023 and 2024, Rock Hill's housing market continued to evolve. Average home prices rose to $283,241 in 2023 and further increased to $292,486 in 2024, marking a 8.2% growth over two years. This upward trend occurred despite a significant increase in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make home financing more expensive, yet Rock Hill's housing market has shown resilience in terms of price appreciation.
Looking ahead, predictive models suggest a continuation of the upward trend in average home prices for Rock Hill over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $325,000 to $340,000 by 2029. Rent prices, which have been more volatile, are projected to stabilize and potentially see modest increases, possibly reaching an average of $1,100 to $1,200 per month in the same timeframe.
In summary, Rock Hill has experienced a notable increase in homeownership rates and average home prices over the past decade, with a slight reversal in recent years. The inverse relationship between homeownership and rental rates highlights the dynamic nature of the local housing market. Despite rising interest rates, home prices continue to appreciate, suggesting strong demand for housing in this suburban St. Louis community. The coming years are likely to see further increases in home values, while the rental market may experience more moderate growth.
