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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Urbana, a city in Missouri, has experienced significant changes in its housing market over the past decade. This small Midwestern community has seen fluctuations in homeownership rates, average home prices, and rental costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Urbana has shown a notable increase in recent years, rising from 66% in 2017 to 87% in 2022. This substantial growth in homeownership coincides with a dramatic rise in average home prices. In 2011, the average home price in Urbana was $90,926. By 2022, this figure had more than doubled to $218,597, representing a 140% increase over 11 years.
The relationship between federal interest rates and homeownership rates in Urbana appears to follow the well-established trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2011 and 2016 (ranging from 0.1% to 0.4%), homeownership rates in Urbana remained relatively stable, hovering around 75%. However, as interest rates began to rise from 2017 onwards, we initially saw a slight dip in homeownership to 66% in 2017. Interestingly, despite continued interest rate increases, Urbana's homeownership rate rebounded strongly, reaching 87% by 2022. This suggests that other local factors may have played a significant role in driving homeownership in recent years.
The rental market in Urbana has shown inverse trends to homeownership. As the percentage of renters decreased from 34% in 2017 to 13% in 2022, average rent prices experienced significant volatility. In 2013, the average rent was $432, rising to a peak of $706 in 2019 before declining to $503 in 2022. This fluctuation in rent prices, coupled with the decreasing proportion of renters, suggests a shift in the local housing market dynamics, possibly influenced by changing population demographics or economic conditions.
Looking at the most recent data, the average home price in Urbana reached $223,523 in 2023 and slightly decreased to $223,512 in 2024. This represents a marginal decline of 0.005% from 2023 to 2024, indicating a potential stabilization in the housing market. Concurrently, federal interest rates rose to 5.02% in 2023 and further increased to 5.33% in 2024, which could impact future homebuying trends.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Urbana may continue to rise, albeit at a slower pace than observed in the past decade. This projection is based on the historical growth trend and the recent stabilization in prices. For rent prices, the forecast suggests a potential moderate increase, considering the historical volatility and the recent decline in the renter population.
In summary, Urbana's housing market has demonstrated remarkable growth in homeownership and average home prices over the past decade. The inverse relationship between homeownership and rental rates, coupled with fluctuating rent prices, highlights the dynamic nature of the local real estate market. While recent data shows a slight cooling in home price growth, the overall trend suggests a continued preference for homeownership in this Missouri city.