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The Shifting Housing Landscape in Beverly Hills, Missouri: Soaring Home Values Amidst Declining Ownership
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
Beverly Hills, Missouri, is a small city located in St. Louis County with a population of 559 as of 2022. This compact urban area, spanning just 0.09 square miles, has experienced significant fluctuations in its homeownership rates and housing market over the past decade. The city has seen a general decline in homeownership percentage, while average home prices have shown a notable upward trend, particularly in recent years.
The homeownership rate in Beverly Hills has steadily decreased from 67% in 2013 to 57% in 2022. This downward trend in homeownership coincides with a substantial increase in average home prices. In 2015, the average home price was $24,854, which rose dramatically to $63,593 by 2022, representing a 155.9% increase over seven years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Beverly Hills. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 66%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), the homeownership rate dropped to 62%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Beverly Hills has grown correspondingly with the decline in homeownership. The percentage of renters increased from 33% in 2013 to 43% in 2022. Interestingly, average rent prices have not shown a consistent upward trend despite the increasing demand for rentals. The average rent peaked at $1,005 in 2016 but has since fluctuated, settling at $968 in 2022. This relative stability in rent prices, despite the growing renter population, could be attributed to various factors, including local rent control measures or an increase in rental unit supply.
In 2023, the average home price in Beverly Hills reached $65,374, with federal interest rates at 5.02%. As of 2024, the average home price has further increased to $67,232, while interest rates have slightly risen to 5.33%. These figures indicate a continuing upward trajectory in home values, even in the face of higher interest rates, which could further impact affordability and homeownership rates in the city.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Beverly Hills will continue to rise over the next five years, potentially reaching around $80,000 by 2029. Rent prices, which have been more stable, may see a moderate increase, potentially approaching $1,100 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Beverly Hills, Missouri, has experienced a significant shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with rapidly rising home prices, suggests a changing demographic and economic profile for the city. The relative stability of rent prices amid increasing demand for rentals presents an interesting dynamic in the local housing market. As the city moves forward, balancing affordability with property value growth will likely be a key challenge for local policymakers and residents alike.
