Loading Content...
St. Charles, Missouri: Rising Home Values and Ownership in a Historic City
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. Charles, Missouri, is a vibrant city with a rich history dating back to 1769 when it was founded as Les Petites Côtes (The Little Hills) by French-Canadian fur trader Louis Blanchette. Known for its charming historic district and as the launching point of the Lewis and Clark Expedition, St. Charles has experienced steady growth in population and property values over the past decade. The city has seen a general trend of increasing homeownership rates, rising average home prices, and climbing average rent costs, reflecting its desirability as a residential location.
The trend in homeownership rates in St. Charles shows an overall increase from 2013 to 2022. In 2013, the homeownership rate was 63%, which fluctuated over the years but ultimately rose to 68% by 2022. This upward trend coincides with a significant increase in average home prices. In 2013, the average home price was $174,353, which steadily rose to $306,329 by 2022, representing a 75.7% increase over nine years. This parallel growth suggests that despite rising prices, St. Charles remained an attractive market for homebuyers, possibly due to strong local economic factors and the city's appeal.
Federal interest rates have played a crucial role in homeownership trends in St. Charles. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates in St. Charles fluctuated but generally remained strong, ranging from 60% to 66%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in St. Charles continued to show resilience, maintaining levels between 62% and 65%. Interestingly, when interest rates dropped sharply in 2020 and 2021 (to 0.38% and 0.08% respectively), St. Charles saw its homeownership rate increase to 67% in 2021, likely due to the increased affordability of mortgages.
The rental market in St. Charles has also experienced notable changes. The percentage of renters decreased from 37% in 2013 to 32% in 2022. However, this decrease in the renter population was accompanied by a significant increase in average rent prices. In 2013, the average rent was $821, which rose to $1,100 by 2022, representing a 34% increase. This trend suggests that while fewer people were renting, those who did were paying substantially more. The increase in rent prices could be attributed to factors such as improved rental property quality, increased demand for high-end rentals, or a shortage of rental units relative to demand.
Looking at the most recent data, the average home price in St. Charles continued its upward trajectory, reaching $319,838 in 2023 and $328,800 in 2024. This represents a 7.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and property values in the coming years.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in St. Charles will continue to rise, albeit potentially at a slower rate due to higher interest rates. Projections suggest that by 2029, average home prices could reach approximately $380,000 to $400,000. For rent prices, the upward trend is likely to continue, with average rents potentially reaching $1,300 to $1,400 by 2029.
In summary, St. Charles has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The city has maintained its appeal to homebuyers despite significant price appreciation. The rental market, while shrinking in terms of the percentage of renters, has seen substantial increases in average rent prices. These trends, coupled with recent interest rate hikes, suggest a dynamic and evolving housing landscape in St. Charles for the coming years.
