Loading Content...
Stockton, Missouri: Rising Home Values Amidst Fluctuating Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Stockton, a city in Missouri, has experienced notable shifts in its housing market over the past decade. This small Midwestern community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The relationship between homeownership rates and average home prices in Stockton reveals an interesting pattern. In 2013, the homeownership rate stood at 67%, with an average home price of $107,383. As average home prices steadily increased, reaching $131,158 by 2018, the homeownership rate declined to 54%. This inverse relationship continued, with homeownership rising slightly to 59% by 2022 as average home prices surged to $211,155, suggesting that while some residents could afford higher-priced homes, others may have been priced out of the market.
Federal interest rates have played a role in shaping homeownership trends in Stockton. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which coincided with a slight increase in average home prices from $107,383 to $122,370. However, as interest rates began to rise gradually from 2016 onwards, reaching 1.83% in 2018, homeownership rates in Stockton declined from 61% to 54%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Stockton have shown a correlated increase over time. In 2013, 33% of residents were renters, with an average rent of $629. By 2017, the renter percentage had grown to 43%, accompanied by an increase in average rent to $735. The renter population peaked at 46% in 2018, with average rent at $706. Interestingly, as the city's population grew from 2,313 in 2018 to 2,805 in 2022, the renter percentage slightly decreased to 41%, while average rent increased to $724, suggesting a potential shift towards homeownership among new residents.
In 2023 and 2024, Stockton's housing market continued to evolve. The average home price in 2023 reached $221,978, further increasing to $229,110 in 2024. This upward trend occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that Stockton's housing market may continue to see growth in both home prices and rents over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $265,000 by 2029. Average rent prices are expected to follow a similar trajectory, with estimated increases of 2-4% per year, potentially reaching $820 by 2029.
In summary, Stockton's housing market has demonstrated resilience and growth, with rising home prices and rents despite fluctuations in homeownership rates. The inverse relationship between homeownership and home prices, coupled with the impact of interest rates, highlights the complex dynamics at play. As the city continues to grow, balancing affordability with market growth will likely remain a key challenge for Stockton's housing sector.
