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Tom Watkins: Rising Home Values and Ownership in Springfield's Resilient Neighborhood
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
Tom Watkins, a neighborhood in Springfield, Missouri, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The neighborhood has demonstrated a general trend towards increased homeownership in recent years, coupled with substantial growth in average home values and average rent prices.
The homeownership rate in Tom Watkins has shown an overall upward trend, particularly in the latter half of the observed period. In 2013, the neighborhood had a homeownership rate of 53%, which remained stable until 2016. From 2016 to 2022, there was a notable increase in homeownership, reaching 57% by 2022. This 4 percentage point increase coincided with a substantial rise in average home prices. In 2013, the average home price was $50,755, but by 2022, it had more than doubled to $115,283, representing a 127% increase over nine years.
The relationship between federal interest rates and homeownership rates in Tom Watkins appears to follow established trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 53%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 50%. However, the subsequent drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a rebound in homeownership rates, reaching 55% in 2021 and 57% in 2022, despite rising interest rates in 2022 (1.68%).
Renter percentages in Tom Watkins have generally mirrored the inverse of homeownership trends. In 2013, 47% of residents were renters, a figure that remained steady until 2016. From 2016 to 2022, the percentage of renters decreased from 49% to 43%. During this period, average rent prices showed a consistent upward trend. In 2013, the average rent was $589, increasing to $874 by 2022, a 48% rise. This increase in rent prices occurred despite fluctuations in the neighborhood's population, which peaked at 6,801 in 2017 before declining to 5,822 in 2022.
In 2023 and 2024, the housing market in Tom Watkins continued its upward trajectory. The average home price reached $126,209 in 2023 and further increased to $130,933 in 2024, representing a 13.6% rise over two years. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, the highest levels in over two decades.
Looking ahead, predictive models suggest a continued upward trend in both average home and rent prices for Tom Watkins over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $160,000 by 2029. Average rent prices are expected to follow a similar trajectory, with annual increases of 2-4%, potentially surpassing $1,000 per month by 2029.
In summary, Tom Watkins has experienced a significant shift towards homeownership, accompanied by substantial increases in both average home values and average rent prices. The neighborhood has shown resilience in its housing market, with property values continuing to rise even in the face of higher interest rates. These trends suggest a growing desirability of the area and potential for further development and investment in the coming years.
