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St. Charles, Iowa: Rising Home Values and Strong Ownership in a Small City
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
St. Charles, Iowa is a small city located in Madison County. Over the past decade, this community has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The city has maintained a relatively high rate of homeownership, with average home prices showing a consistent upward trajectory, while average rent prices have experienced more variability.
The homeownership rate in St. Charles has remained predominantly high, ranging from 75% to 84% between 2013 and 2022. This trend has coincided with a significant increase in average home prices. In 2013, the average home price was $161,521, which steadily rose to $358,527 by 2022, representing a remarkable 122% increase over this period. The year 2016 saw a notable jump in average home prices, rising from $185,896 in 2015 to $203,759, a 9.6% increase in just one year. This upward trend continued, with the most substantial year-over-year increase occurring between 2020 and 2021, when average home prices surged from $281,892 to $316,840, a 12.4% increase.
Federal interest rates have played a role in shaping homeownership trends in St. Charles. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the city's high homeownership rates during this time, peaking at 84% in 2013. As interest rates began to rise more significantly from 2017 onwards, there was a slight decline in homeownership, dropping to 75% in 2017 and 2018. However, the city's homeownership rate rebounded to 81% by 2022, despite rising interest rates, suggesting other local factors may have influenced this trend.
Renter percentages in St. Charles have fluctuated inversely to homeownership rates, ranging from 16% to 25% between 2013 and 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $600, which increased sharply to $917 in 2014, a 52.8% jump. Rent prices continued to rise gradually, reaching a peak of $961 in 2018. Interestingly, as the renter percentage increased to 25% in 2017 and 2018, average rent prices also reached their highest levels. However, there was a notable decrease in average rent to $720 in 2021, coinciding with a slight increase in the renter percentage to 23%. By 2022, average rent had rebounded to $924, while the renter percentage decreased to 19%.
In 2023, the average home price in St. Charles reached $365,792, a 2% increase from 2022, while the federal interest rate rose to 5.02%. Moving into 2024, the average home price has continued its upward trend, reaching $379,793, a 3.8% increase from 2023. The federal interest rate has also increased slightly to 5.33% in 2024, potentially impacting homebuying decisions in the city.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in St. Charles will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $425,000 by 2029. Average rent prices are expected to remain volatile but may stabilize around $950 to $1,000 per month, influenced by factors such as housing demand, local economic conditions, and population changes.
In summary, St. Charles has maintained a strong homeownership market despite rising home prices, with a consistent upward trend in property values over the past decade. The rental market has shown more volatility, both in terms of renter percentages and average rent prices. The city's ability to maintain high homeownership rates in the face of rising home prices and fluctuating interest rates suggests a resilient local housing market and continued demand for homeownership in this small Iowa community.
