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Union Star, Missouri: Home Values Double Amid Shifting Ownership Trends
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
Union Star, a small town in Missouri, has experienced significant demographic and housing market changes over the past decade. The city's homeownership rates and average home prices have shown interesting trends, reflecting broader economic shifts and local market dynamics. From 2013 to 2022, Union Star saw fluctuations in its homeownership rate. In 2013, the rate stood at 77%, rising to a peak of 82% in 2018. However, by 2022, it had decreased to 74%. During this same period, average home prices in Union Star showed a steady upward trend. In 2013, the average home price was $87,046, which increased to $171,710 by 2022, representing a substantial 97% growth over nine years.
The relationship between federal interest rates and homeownership rates in Union Star follows a general trend observed nationally. From 2013 to 2016, when interest rates were historically low (between 0.11% and 0.40%), homeownership rates in Union Star increased from 77% to 80%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a corresponding decline in homeownership rates, dropping to 74% by 2022.
Renter percentages and average rent prices in Union Star have shown an inverse relationship to homeownership trends. As homeownership decreased from 82% in 2018 to 74% in 2022, the percentage of renters increased from 18% to 26%. Average rent prices also saw a significant increase during this period. In 2018, the average rent was $363, which rose sharply to $800 by 2022, a 120% increase in just four years. This surge in rent prices coincided with a population increase from 602 in 2018 to 840 in 2022, suggesting increased demand for rental properties.
In 2023 and 2024, Union Star's housing market showed signs of stabilization. The average home price slightly decreased from $171,710 in 2022 to $169,114 in 2023, and further to $168,240 in 2024. This cooling trend occurred as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially dampening home buying activity.
Looking ahead, based on recent trends and current economic conditions, we can expect average home prices in Union Star to stabilize or potentially decrease slightly over the next five years. The high interest rates may continue to put downward pressure on home prices. Average rent prices, however, are likely to continue increasing, albeit at a slower rate, driven by the growing population and the shift towards renting.
In summary, Union Star has experienced a notable shift in its housing market over the past decade. The town saw a substantial increase in average home prices and rent, alongside fluctuations in homeownership rates. Recent data suggests a potential cooling of the housing market, while the rental market remains strong. These trends reflect the interplay of population growth, economic factors, and changing housing preferences in this small Missouri town.
