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St. Ann, Missouri: Rising Home Values Amidst Declining Ownership in a Compact Urban Area
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
St. Ann, Missouri: A Suburban Housing Market in Transition St. Ann is a city located in Missouri, known for its proximity to St. Louis and its rich suburban character. Over the past decade, St. Ann has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. This analysis examines the changes in homeownership, home values, and rental markets in St. Ann from 2013 to 2024, providing insights into the evolving housing landscape of this suburban community.
Homeownership and Home Price Trends The homeownership rate in St. Ann has shown a slight decline over the years, moving from 59% in 2013 to 55% in 2022. This change coincides with fluctuations in average home prices, which have seen significant growth. In 2013, the average home price in St. Ann was $69,051. By 2022, this figure had nearly doubled to $131,567, representing a substantial increase in property values over a decade. The upward trajectory of home prices continued, with the average reaching $138,942 in 2023 and further increasing to $143,869 in 2024.
Impact of Federal Interest Rates The relationship between federal interest rates and homeownership rates in St. Ann follows a generally expected pattern. When interest rates were at historic lows between 2013 and 2016, hovering around 0.1% to 0.4%, the homeownership rate remained relatively stable at 59% to 56%. As interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, there was a slight decrease in homeownership to 55%. This trend suggests that higher interest rates may have made homeownership less attainable for some residents. The significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, may pose further challenges for potential homebuyers, potentially influencing future homeownership rates in the city.
Rental Market Dynamics Renter percentages in St. Ann have inversely mirrored the homeownership trends, increasing from 41% in 2013 to 45% in 2022. During this period, average rent prices have also risen, though not as dramatically as home prices. In 2013, the average rent was $826, which increased to $861 by 2022, representing a modest 4.2% increase over nine years. The relatively slower growth in rent prices compared to home prices may have contributed to the slight shift towards renting in the city.
Future Projections Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in St. Ann will continue to rise, potentially reaching around $160,000 to $170,000 by 2029. Rent prices are also expected to increase, albeit at a more moderate pace, possibly reaching an average of $950 to $1,000 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
Conclusion St. Ann has witnessed a gradual shift towards renting, with a corresponding decrease in homeownership rates over the past decade. This trend has occurred alongside substantial increases in average home prices and more modest growth in rent prices. The interplay between federal interest rates, housing affordability, and demographic changes will likely continue to shape St. Ann's housing market in the coming years, with both home prices and rents expected to maintain an upward trajectory.
