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Sullivan, Missouri: Rising Home Values and 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
Sullivan, Missouri, located in Franklin County, is a small urban center with a land area of 8.19 square miles. Over the past decade, this city has experienced significant changes in its population and housing market. The trends in homeownership, average home prices, and average rent prices paint an interesting picture of Sullivan's evolving real estate landscape. Homeownership rates in Sullivan have shown a notable increase in recent years. In 2013, 64% of residents owned their homes, and this figure rose to 70% by 2022. This upward trend in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $142,119, and by 2022, it had risen to $171,004, representing a 20.3% increase over this period. The relationship between federal interest rates and homeownership rates in Sullivan presents an intriguing pattern. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 0.4%), homeownership rates initially declined from 64% in 2013 to 57% in 2016. However, from 2016 onwards, as interest rates began to rise gradually, homeownership rates also increased, reaching 70% by 2022 when the federal interest rate was 1.68%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have influenced homeownership trends in Sullivan.
Renter percentages in Sullivan have shown an inverse relationship to homeownership rates. The percentage of renters increased from 36% in 2013 to a peak of 43% in 2016, before declining to 30% in 2022. Average rent prices have fluctuated during this period, starting at $753 in 2013, reaching a low of $731 in 2016, and then rising to $764 in 2022. The population of Sullivan decreased from 8,750 in 2013 to 7,867 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Sullivan's housing market continued to evolve. The average home price rose to $176,905 in 2023 and further increased to $181,299 in 2024, representing a 6% growth over two years. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the city.
Applying predictive models to forecast 5-year trends, average home prices in Sullivan are expected to continue their upward trajectory, potentially reaching around $200,000 by 2029. Average rent prices are also projected to increase, possibly surpassing $850 per month within the same timeframe. These predictions assume a continuation of current economic conditions and housing market trends.
In summary, Sullivan has experienced a significant shift towards homeownership in recent years, with a corresponding increase in average home prices. The rental market has contracted, but average rent prices have remained relatively stable with a slight upward trend. The city's declining population and rising home prices suggest a changing demographic landscape, potentially attracting more homeowners while seeing a reduction in the renter population. As Sullivan moves forward, these trends are likely to shape its housing market and community composition in the coming years.
