Loading Content...
Southwest Garden: Rising Home Values and Fluctuating Ownership Rates in a Dynamic St. Louis 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
Southwest Garden, a vibrant neighborhood in St. Louis, Missouri, has experienced significant changes in homeownership rates and property values over the past decade. This analysis examines the trends in average home prices, rent costs, and ownership patterns from 2013 to 2024, while also considering the influence of federal interest rates on these dynamics. The homeownership rate in Southwest Garden showed a gradual increase from 39% in 2013 to 44% in 2018, coinciding with a steady rise in average home prices from $124,166 to $164,345 during the same period. This positive correlation suggests that as property values increased, more residents were able or willing to invest in homeownership. However, from 2018 to 2022, there was a slight decline in homeownership to 41%, while average home prices continued to climb, reaching $214,287 in 2022. This divergence might indicate that rising home prices began to outpace some residents' ability to purchase homes.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership in Southwest Garden increased from 39% to 40%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. As interest rates began to rise more significantly from 2016 onwards, the growth in homeownership rates slowed and eventually reversed, further supporting this relationship.
The renter population in Southwest Garden has fluctuated inversely to homeownership rates. In 2013, 61% of residents were renters, and this percentage decreased to 56% by 2018 as homeownership increased. Average rent prices during this period showed considerable volatility. From 2013 to 2015, average rent increased sharply from $800 to $962, possibly reflecting growing demand for rental properties. However, from 2015 to 2019, average rent prices declined to $821, despite the renter percentage increasing slightly to 58%. This could indicate an oversupply of rental units or economic factors affecting rental market dynamics.
Looking at the most recent data, average home prices in Southwest Garden continued their upward trajectory, reaching $226,962 in 2023 and $232,833 in 2024. This represents a significant increase from previous years, potentially reflecting broader economic trends and increased demand for housing in the area. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Southwest Garden will continue to rise, potentially reaching around $270,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices, which have been more volatile, are expected to stabilize and potentially increase moderately, possibly reaching $900-$950 per month by 2029. These predictions assume relatively stable economic conditions and continued demand for housing in the area.
In summary, Southwest Garden has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics over the past decade. The neighborhood has seen a general trend of increasing property values, with some fluctuations in homeownership rates. The relationship between federal interest rates and homeownership trends is evident, with lower rates generally corresponding to higher homeownership rates. As the community moves forward, it will likely continue to see changes in its housing market, influenced by broader economic factors and local demand.
