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Russellville's Resilient Real Estate: Rising Home Values and Strong Ownership Trends
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
Russellville, Missouri, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns in the local real estate landscape. The homeownership rate in Russellville has fluctuated but generally remained high. From 2013 to 2022, the percentage of owner-occupied homes ranged from 70% to 82%. The city saw its lowest homeownership rate of 70% in 2018, which then increased to 82% by 2022. This upward trend in homeownership coincided with a significant rise in average home prices. In 2012, the average home price was $120,704, which steadily increased to $265,013 by 2022, representing a 119.6% increase over a decade.
The relationship between federal interest rates and homeownership rates in Russellville appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were relatively low between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained above 70%. As interest rates began to rise more steeply from 2017 onwards, there was a slight dip in homeownership rates, reaching 70% in 2018 when the federal interest rate was 1.83%. However, homeownership rebounded strongly to 82% by 2022, despite rising interest rates, possibly due to other local economic factors.
Renter percentages in Russellville have generally been the inverse of homeownership rates, ranging from 18% to 30% between 2013 and 2022. The highest percentage of renters was observed in 2018 at 30%, coinciding with the lowest homeownership rate. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $561, which increased to $758 by 2022, representing a 35.1% increase. It's worth noting that despite the population growth from 1,720 in 2013 to 1,757 in 2022, the rental market share decreased from 20% to 18%, suggesting a stronger preference for homeownership in recent years.
In 2023 and 2024, Russellville's housing market continued to demonstrate growth. The average home price reached $279,694 in 2023 and further increased to $299,311 in 2024, showing a 7% year-over-year growth. This occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating strong local demand for housing even in a higher interest rate environment.
Looking ahead, based on the observed trends, we can predict that average home prices in Russellville will likely continue to rise over the next five years, potentially reaching around $350,000 by 2029 if the current growth rate persists. Average rent prices may also continue their upward trajectory, potentially surpassing $900 per month within the same timeframe. However, these projections assume stable economic conditions and continued local growth.
In summary, Russellville's housing market has shown resilience and growth, with increasing homeownership rates and rising property values. The city has maintained a strong preference for homeownership despite fluctuations in interest rates and significant increases in home prices. The rental market, while smaller, has also seen steady growth in prices. These trends suggest a robust and dynamic real estate environment in Russellville, with potential for continued growth in both the homeownership and rental sectors.
