Loading Content...
Sedalia, Missouri: Home Values Double as State Fair City Evolves
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sedalia, a vibrant city in Missouri, has experienced notable shifts in its housing market over the past decade. Known for its rich history and as the host of the Missouri State Fair, Sedalia has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends. From 2013 to 2022, the city witnessed a slight decrease in homeownership, while average home prices and average rent prices generally trended upward.
The homeownership rate in Sedalia showed a modest decline from 67% in 2013 to 66% in 2022. During this same period, average home prices demonstrated a significant upward trend. In 2013, the average home price was $73,102, which steadily increased to $145,928 by 2022, representing a substantial 99.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, Sedalia's homeownership rate decreased slightly from 67% to 64%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in Sedalia stabilized around 63-65%. Interestingly, when interest rates dropped sharply in 2020 and 2021 to near-zero levels, Sedalia's homeownership rate increased to 66%, possibly reflecting increased affordability of mortgages.
Renter percentages in Sedalia showed a slight increase from 33% in 2013 to 34% in 2022, mirroring the decrease in homeownership. Average rent prices fluctuated during this period but generally trended upward. In 2013, the average rent was $753, which increased to $796 by 2022, an overall increase of 5.7%. The city's population grew from 31,275 in 2013 to 32,179 in 2022, a 2.9% increase, which may have contributed to the upward pressure on rent prices.
In 2023, Sedalia's average home price reached $153,965, continuing its upward trajectory. This trend persisted into 2024, with average home prices climbing to $163,775. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in Sedalia.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Sedalia may continue to rise over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $900 per month within the same timeframe. However, these projections may be influenced by various factors, including economic conditions, local development, and changes in federal interest rates.
In summary, Sedalia has experienced a slight decrease in homeownership rates alongside substantial increases in average home prices over the past decade. Renter percentages have marginally increased, with average rent prices showing moderate growth. The relationship between federal interest rates and homeownership rates has been complex, with recent increases in interest rates potentially impacting future housing market dynamics. As Sedalia continues to grow, these trends will likely shape the city's housing landscape in the coming years.
