Loading Content...
Tower Grove East: Rising Home Values and Ownership in a Historic St. Louis Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Tower Grove East, a historic neighborhood in St. Louis, Missouri, has experienced significant changes in homeownership and property values over the past decade. From 2013 to 2022, the area saw a substantial increase in homeownership rates, rising from 41% to 52%. This 11 percentage point increase coincided with a dramatic rise in average home prices, nearly doubling from $139,990 in 2013 to $274,447 in 2022, representing a 96% increase over nine years.
The relationship between federal interest rates and homeownership rates in Tower Grove East generally followed expected patterns. From 2013 to 2016, when interest rates remained below 0.5%, homeownership rates held relatively steady around 41-42%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, homeownership rates also started to climb, reaching 43% that year. This trend continued through 2022, with homeownership increasing to 52% despite rising interest rates, possibly due to other local factors influencing the housing market.
Renter percentages in Tower Grove East inversely mirrored the homeownership trend, decreasing from 59% in 2013 to 48% in 2022. Average rent prices showed an overall upward trend during this period, despite the declining percentage of renters. In 2013, the average rent was $1,106, which increased to $1,319 by 2019, a 19% rise. However, there was a significant drop in 2020 to $980, followed by a slight recovery to $1,065 in 2022. This fluctuation in rent prices, particularly the decrease in 2020, may be attributed to broader economic factors and changes in the local rental market.
As of 2024, the average home price in Tower Grove East stands at $282,135, showing continued appreciation from the 2022 value. This represents a 2.8% increase from the 2023 average of $281,905. The current federal interest rate in 2024 is 5.33%, which is slightly higher than the 2023 rate of 5.02%. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Tower Grove East may continue to appreciate, albeit at a more moderate pace. Over the next five years, we might expect average home prices to reach around $310,000 to $320,000, assuming current trends persist. Rent prices are likely to stabilize and potentially see modest increases, potentially reaching an average of $1,200 to $1,300 per month within the next five years.
In summary, Tower Grove East has experienced a significant shift towards homeownership over the past decade, accompanied by substantial appreciation in home values. Despite fluctuations in the rental market and rising interest rates, the neighborhood has maintained its appeal to both homeowners and investors. The continued rise in home prices, even in the face of higher interest rates, suggests a strong and resilient local housing market.
