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Springfield, Missouri: Home Values Nearly Double Amid Shift to Renting
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
Springfield, Missouri, a vibrant city known for its rich history and role as a regional economic hub, has experienced notable shifts in homeownership rates, average home prices, and average rent prices over the past decade. The city has seen a general trend towards increased renting, with fluctuations in homeownership percentages. Meanwhile, both average home prices and average rent prices have shown an upward trajectory, particularly in recent years.
Analysis of homeownership trends in Springfield reveals interesting patterns when compared to average home prices. In 2013, the homeownership rate was 44%, with an average home price of $106,498. By 2022, the homeownership rate had decreased slightly to 41%, while the average home price had nearly doubled to $212,634. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. Notably, there were fluctuations in between, with homeownership reaching a peak of 47% in 2014 when average home prices were still relatively low at $110,531.
Federal interest rates appear to have influenced homeownership rates in Springfield. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased from 42% to 44%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise sharply in 2022 to 1.68%, the homeownership rate dropped back to 41%, suggesting a potential correlation between higher interest rates and decreased homeownership.
Renter percentages and average rent prices in Springfield have shown a generally upward trend. In 2013, 56% of residents were renters, with an average rent of $671. By 2022, the renter percentage had increased to 59%, with average rent rising to $900. This represents a 34% increase in average rent over nine years. The city's growing population, which increased from 164,133 in 2013 to 170,062 in 2022, likely contributed to the demand for rental properties and subsequent rent increases.
As of 2023 and 2024, Springfield's housing market has continued to evolve. The average home price in 2023 reached $224,071, and in 2024 it further increased to $231,473. This represents a significant 8.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen dramatically, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that both average home prices and rent prices in Springfield are likely to continue their upward trajectory over the next five years. Based on historical trends, average home prices could potentially reach around $275,000 by 2029, while average rent prices might approach $1,100 per month. However, these projections could be influenced by various factors such as economic conditions, local development, and changes in population.
In summary, Springfield has experienced a shift towards renting, with homeownership rates slightly declining as average home prices have nearly doubled over the past decade. Average rent prices have also shown consistent increases. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of Springfield's housing market. As the city continues to grow and evolve, these trends will likely play a crucial role in shaping its residential landscape in the coming years.
