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Zip Code 65254: Glasgow, Missouri's Rising Home Values and Ownership Trends in a Small-Town Setting
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
Glasgow, located in zip code 65254 in Missouri, has experienced notable shifts in homeownership rates and housing prices over the past decade. This small community, with a population of 1,880 in 2022, has seen interesting trends in its real estate market, reflecting broader economic changes and local dynamics.
The homeownership rate in Glasgow has shown considerable fluctuation between 2013 and 2022. Starting at 78% in 2013, it reached a peak of 87% in 2021 before settling at 84% in 2022. This overall increase in homeownership coincided with a significant rise in average home prices. In 2015, the average home price was $110,210, which steadily increased to $159,862 by 2022, representing a 45% increase over seven years.
The relationship between federal interest rates and homeownership rates in Glasgow shows an interesting pattern. As interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates generally increased, reaching 82% in 2020. This aligns with the principle that lower interest rates tend to encourage homeownership due to more affordable financing options. However, it's worth noting that even as interest rates began to rise sharply in 2022 to 1.68%, homeownership in Glasgow remained high at 84%, suggesting other local factors may be influencing this trend.
Renter percentages in Glasgow have inversely mirrored the homeownership trends, decreasing from 22% in 2013 to 16% in 2022. Interestingly, average rent prices have shown volatility during this period. Starting at $683 in 2013, rent prices dropped to $476 in 2016, then fluctuated before reaching $591 in 2022. This represents a 13.5% decrease in average rent over the decade, despite the overall decrease in the proportion of renters.
In 2023, the average home price in Glasgow reached $168,296, continuing the upward trend seen in previous years. This occurred as federal interest rates climbed to 5.02%. Moving into 2024, we see a slight dip in average home prices to $167,764, while interest rates further increased to 5.33%. This slight cooling in home prices may be attributed to the higher interest rates making mortgages more expensive for potential buyers.
Looking ahead, based on the trends observed, we can predict that average home prices in Glasgow may continue to rise modestly over the next five years, albeit at a slower pace due to higher interest rates. Average rent prices, which have been volatile, might stabilize or see slight increases as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, Glasgow has seen a general trend towards increased homeownership and rising home values over the past decade, despite recent increases in interest rates. The rental market has shown more volatility, with decreasing renter percentages and fluctuating rent prices. These trends reflect a complex interplay of local economic factors, population changes, and broader economic conditions, showcasing the dynamic nature of the real estate market in this Missouri community.
