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Southern Hills: Rising Home Values and Shifting Ownership in Springfield's Dynamic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Southern Hills, Springfield: A Decade of Housing Market Shifts Southern Hills, a neighborhood in Springfield, Missouri, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the area witnessed a notable decrease in homeownership rates, coupled with substantial increases in average home prices and rent rates. This analysis examines the trends in homeownership, housing prices, and rental markets in Southern Hills, highlighting the impact of federal interest rates on these patterns.
Homeownership Trends and Home Prices The homeownership rate in Southern Hills fluctuated between 2013 and 2022, showing an overall downward trend. In 2013, the owner-occupied rate stood at 48%. It reached its peak at 53% in 2017 before declining to 40% by 2022. This decrease in homeownership coincided with a significant rise in average home prices. The average home price in 2013 was $136,512, which steadily increased to $271,686 by 2022, representing a substantial 99% increase over this period.
Impact of Federal Interest Rates Federal interest rates played a crucial role in shaping homeownership trends in Southern Hills. From 2013 to 2016, interest rates remained low, ranging from 0.1% to 0.4%. During this period, homeownership rates in the neighborhood remained relatively stable, fluctuating between 47% and 49%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, a more pronounced decline in homeownership rates was observed, dropping from 53% in 2017 to 40% in 2022.
Rental Market Dynamics The renter population in Southern Hills showed an inverse relationship to homeownership trends. The percentage of renter-occupied housing increased from 52% in 2013 to 60% in 2022. This rise in renters corresponded with an overall increase in average rent prices. In 2013, the average rent was $760, which rose to $808 by 2022, representing a 6.3% increase. It's worth noting that rent prices fluctuated during this period, reaching a peak of $942 in 2021 before decreasing in 2022.
Recent Market Developments In 2023 and 2024, the housing market in Southern Hills continued to evolve. The average home price rose to $283,328 in 2023 and slightly increased to $283,372 in 2024. This represents a 4.3% increase from 2022 to 2023, followed by a marginal 0.02% increase from 2023 to 2024. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Future Projections Looking ahead to the next five years, based on current trends, average home prices in Southern Hills are expected to continue rising, albeit at a slower pace than seen in recent years. The average home price could potentially reach around $310,000 by 2029. Average rent prices may also continue to increase, potentially reaching approximately $900 per month by 2029, assuming a steady growth rate similar to recent years.
Conclusion Southern Hills has experienced a shift towards a renter-majority population over the past decade, coupled with substantial increases in average home prices. The recent surge in federal interest rates may continue to influence homeownership rates in the coming years. Despite some fluctuations, both average home prices and average rent prices have shown an overall upward trend, which is expected to continue, albeit at a more moderate pace.
