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Surging Home Values and Rising Ownership in Drexel, Missouri: A Decade of Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Drexel, Missouri, is a small urban area that has experienced notable shifts in its housing landscape over the past decade. The city has seen a significant increase in homeownership rates, rising average home prices, and fluctuating rent costs. These trends have shaped the local real estate market and reflect broader economic changes in the region.
The homeownership rate in Drexel has shown a strong upward trend, coinciding with a substantial increase in average home prices. In 2013, 77% of residents were homeowners, and this figure rose steadily to reach 83% by 2022. During this same period, average home prices more than doubled, increasing from $123,941 in 2013 to $276,221 in 2022. This parallel growth suggests a robust local housing market with increasing demand for homeownership despite rising prices.
Federal interest rates have played a significant role in shaping homeownership trends in Drexel. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the initial surge in homeownership from 77% to 80%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the growth in homeownership slowed but remained positive, indicating strong local factors supporting this trend.
The rental market in Drexel has experienced contrasting trends. As homeownership increased, the percentage of renters decreased from 23% in 2013 to 17% in 2022. However, average rent prices saw a substantial rise during this period, almost doubling from $610 in 2013 to $1,248 in 2022. This increase in rent prices, despite a shrinking renter population, suggests a tight rental market with limited supply or high-quality rental properties commanding premium prices.
In 2023 and 2024, the housing market in Drexel showed signs of stabilization. The average home price slightly decreased to $275,090 in 2023 before rebounding to $281,717 in 2024. This occurred against a backdrop of significantly higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially cooling the rapid price growth seen in previous years.
Looking ahead, predictive models suggest that Drexel's housing market will continue to evolve. Over the next five years, average home prices are projected to increase at a more moderate pace, potentially reaching around $300,000 by 2029. Rent prices are expected to follow a similar trajectory, with average rents potentially approaching $1,500 per month in the same timeframe. These projections assume continued economic stability and gradual population growth in the area.
In summary, Drexel has experienced a significant shift towards homeownership, accompanied by substantial increases in both home prices and rents. The interplay between federal interest rates, local economic conditions, and housing supply has shaped these trends. As the market shows signs of stabilization, future growth is expected to be more moderate, reflecting a maturing real estate landscape in this Missouri city.
