Springfield, Missouri

Comprehensive Guide to Investing in Springfield, Missouri Real Estate 2024

Springfield Real Estate Market 2024

Springfield, Missouri, is shaping up to be a hotspot for real estate in 2024. It’s known for being affordable and steadily growing. This makes it a smart pick for both homebuyers and commercial investors.

Investing in Springfield real estate is strategic for several reasons:

  • Affordability: Springfield’s got a median home price that’s way lower than lots of other U.S. cities. It’s affordable but still offers a great quality of life. This makes it very attractive for investors hunting for good deals. 
  • Population Growth: Springfield’s population keeps growing. The economy is booming, schools are top-notch, and the quality of life is great. More people moving in means a higher demand for homes to buy or rent. This makes it an exciting time for property investors!
  • Economic Stability: The local economy is pretty varied. Healthcare, education, and retail are all strong here. Big employers like CoxHealth, Mercy Hospital, and Missouri State University keep things stable. They draw in new residents regularly and help boost the housing market, too. 
  • Development Projects: A bunch of new projects are popping up in the city. The Springfield Art Museum is getting bigger, and there’s work happening at the Jordan Valley Innovation Center, too. These upgrades make life better for everyone living here. Also, they boost property values nearby!
  • Educational Institutions: Springfield has a bunch of colleges, like Missouri State University. These schools keep the rental market steady and draw in families and professionals. This boosts the demand for housing all around town. 

Springfield Real Estate Market Trends and Statistics 2024

Housing Market Overview

The housing market in Springfield, Missouri, for 2024 is looking good. There’s steady growth and some great investment opportunities popping up. The median home price sits around $245,000 right now. That’s a slight dip of about 2.1% from last year.

Compared to many other places in the U.S., Springfield remains pretty affordable! Homes here are selling at roughly 99.17% of their listing prices, too—so things seem balanced with properties going close to what sellers ask for them. 

In Springfield, homes are now staying on the market for around 54 days. This is a bit longer than in recent months. But it’s still pretty quick when it comes to selling property, showing that demand remains strong.

Rental Market in Springfield

Overview of Rental Prices and Trends

Springfield, Missouri’s rental market is both affordable and stable, making it a great choice for renters and investors alike. In 2024, the median rent for an apartment will be about $1,295. Studio apartments cost around $810 per month, one-bedroom apartments about $837 monthly, and two-bedroom apartments typically cost around $952 each month. 

Rental prices in Springfield haven’t changed much over the past year. This is good news for renters looking to keep their housing costs steady without big jumps each year. On the flip side, renting a house here will cost more, averaging around $1,407 per month.

Price to Rent Ratio in Springfield Compared to the National Average

Springfield’s rental prices are a real bargain compared to the national average. While most places in the country charge around $1,515 per month for rent, Springfield comes in at just $1,295. That’s quite a bit cheaper! 

But it’s not just about rent; living costs overall are lower here, too—about 14% less than what you’d find elsewhere across the nation. Housing, specifically, is roughly 26% more affordable than other parts of America. So, if looking for cost-effective living options as a renter is on the agenda, Springfield might be worth considering! 

Property Appreciation in Springfield

Historical Appreciation Rates

Over the past year, Springfield, Missouri, has seen a slight increase in home values. The city’s appreciation rate was around 3.64% over twelve months. This is below the national average and lower than many other cities in Missouri. In the most recent quarter, homes appreciated by about 0.69%. That works out to an annual rate of roughly 2.78%.

Future Projections for Property Value Increases

Looking ahead, property values in Springfield are set to keep climbing, though not too fast. Experts think home prices in Missouri, including Springfield, will go up by about 4.4% next year. This bump is thanks to steady demand and low inventory levels, along with a good economy backing it all up. 

Home prices are expected to rise, and mortgage rates play a big role in this. By the end of 2024, mortgage rates should settle around 6.3%. This could make buying homes a bit easier for people. More buyers might jump into the market because of it, which can push home prices up even more. 

Springfield Population Trends

Population Growth in Springfield

  • Recent Population Growth Statistics: Springfield, Missouri has around 170,970 people in 2024. It’s growing slowly at a rate of 0.27% each year. The metro area is doing better, with a population bump of 1.37%, now hitting about 369,000 people. 
  • Demographic Breakdown and Trends: Springfield’s population is pretty evenly split between genders: 50.9% female and 49.1% male. The city has a mix of ages, with the median age being 33.2 years old.

When it comes to race, here’s how things break down: 

  • White: 88.1% 
  • Black: 4.4% 
  • Two or more races: 3.6% 
  • Asian: 2% 

Other races make up about 12%. It’s quite a diverse place!

Migration Patterns

  • Influx of New Residents: Springfield, Missouri, has been welcoming more and more new people lately. In 2023 alone, the population bumped up by about 0.5%, hitting a total of 170,067 people. This is all part of a bigger trend where people are moving to places that cost less and aren’t as crowded. 
  • Factors Driving Population Changes: A bunch of reasons are making people move to Springfield. Remote work is a big one, letting people leave pricey cities for better living and cheaper costs. Also, housing in Springfield doesn’t break the bank. The overall cost of living here is very reasonable, too. Families and retirees find these perks really appealing. 

Springfield Employment Trends

Job Growth in Springfield

  • Recent Job Growth Statistics: Springfield, Missouri, is seeing a nice boost in job growth. Between February 2023 and February 2024, the state added 46,000 jobs overall. In Springfield alone, private education and health services brought in an extra 18,200 jobs. The mining, logging, and construction sectors also chipped in with another 6,300 new positions. 
  • Comparison to National Employment Trends: Springfield’s job market is doing great. Nationally, the unemployment rate sits at about 3.7%. But in Springfield? It’s only 3.3%. This shows that more people are finding work here and the local economy is stronger than many other places. 

Major Employers in Springfield

Key Industries and Employers

Springfield, Missouri, has a mix of key industries and big employers that boost the local economy. CoxHealth leads with 12,178 employees. Mercy Hospital Springfield follows closely behind with 9,214 workers. 

Walmart and Sam’s Club also play a major role here by employing 4,981 people combined. Springfield Public Schools have about 3,685 staff members on board, too! And let’s not forget Bass Pro Shops’ headquarters which employs around 2,989 folks in town. 

Impact on the Local Economy and Housing Market

Big employers play a huge role in keeping Springfield’s economy strong. They offer steady jobs and help out smaller businesses, too. With big healthcare and retail sectors around, there’s always a need for more housing. This demand keeps the housing market lively. 

More workers coming into these fields means more people moving to town, which boosts the population. As a result, both rental properties and homes for sale see higher demand—this impacts prices and availability across the board. 

Noteworthy Building and Developments in Springfield

Jordan Valley Innovation Center

Development Project

The Jordan Valley Innovation Center (JVIC) at Missouri State University is a top-notch R&D hub. It zeroes in on advanced manufacturing, especially for aerospace and semiconductors. The latest addition is Building 6—a sprawling 12,000-square-foot space packed with specialized labs and high-tech braider equipment for composite materials.

Impact on Local Real Estate

The growth of JVIC is a big win for Springfield’s real estate market. High-tech companies and skilled pros are flocking to the area, which means more demand for homes and office spaces. Property values go up, sparking even more development.

JVIC isn’t just about tech; it’s also pushing innovation by teaming up with private businesses. This creates an exciting economic scene that catches investors’ eyes, too!

Springfield Art Museum Expansion

Details of the Expansion

The Springfield Art Museum is getting a major makeover. This $25 million project aims to turn it into a modern civic gem by 2028. The museum will grow from 52,000 square feet to about 72,000. What's new? There'll be art education and family labs for hands-on fun. Galleries are being refreshed and expanded, too! Plus, outdoor spaces will link up with Phelps Grove Park and the Greenway Trail. A café and event spaces for gatherings of all kinds are on the way. Accessibility improvements are also part of this exciting upgrade​.

Influence on Property Values in the Area

The Springfield Art Museum's expansion is set to boost local property values. Adding more cultural spots makes the area nicer for both visitors and residents. This project will likely increase demand for nearby homes. With this development, the neighborhood becomes even more appealing. It encourages community involvement, too! All of these factors can lead to higher investments in properties around here and bump up their value.

Grant Avenue Parkway

Description of the Project

The Grant Avenue Parkway project is a big deal for Springfield, Missouri. It’s a $26 million plan to build a 3-mile corridor that’s great for walking and biking. This parkway will link downtown with the Wonders of Wildlife National Museum and Aquarium. 

Along the way, it connects parks, schools, and neighborhoods, too. The project includes bike lanes and pedestrian paths. There are also traffic-calming measures in place along with utility upgrades and better intersections. 

Expected Benefits for the Community

This project is set to bring big benefits to the community. It will make transportation safer and easier for everyone. Traffic jams should become less of a headache, too. Plus, it’s going to make the area look nicer. On top of that, expect an economic boost! 

Tourists will be more likely to visit, and new businesses might pop up because of this improvement. The plan also has green goals in mind. Promoting walking or biking instead of driving helps with sustainability efforts while adding some lovely green spaces around town.

IDEA Commons

Innovation District

IDEA Commons is Missouri State University's urban innovation park. It's a mix of residential, retail, commercial, and entertainment spaces all in one place. Covering 88 acres, it includes the Jordan Valley Innovation Center (JVIC), the Robert W. Plaster Free Enterprise Center, and Brick City. This district supports academic programs and research projects. It also encourages partnerships between the university and private businesses in fields like technology and entrepreneurship. Their goal is to spark new ideas, create jobs, and boost downtown Springfield's economy.

Potential Impact on Local Real Estate Market

IDEA Commons is shaking up the local real estate scene. Demand for commercial and residential properties is on the rise. New office spaces, research centers, and green areas are popping up everywhere. Businesses love it; professionals do, too. Property values are going through the roof! Economic growth is getting a nice boost as well. This innovation district isn't just about buildings—it's creating a lively community vibe that makes Springfield attractive to investors and residents.