Last updated on June 28, 2022 Show
Springfield is rated as one of the best markets for renters in the U.S. based on factors such as rental market activity, affordability, and a great quality of life. That helps to explain why rents for a 3-bedroom home in Springfield have surged by nearly 37% over the past three years. Nicknamed “Queen City of the Ozarks” and the “Birthplace of Route 66," Springfield is located in Southwestern Missouri along the Ozark Mountain Range, and only a few hours drive from Kansas City, St. Louis, and Tulsa. For a small city of its size, Springfield boasts a robust economy. Industry sectors powering growth in the region include healthcare, manufacturing, education, and tourism. This energetic metropolitan area has a growing job market, expanding population, and a very affordable cost of living that’s well below the national average. Keep reading to learn more about Springfield's real estate market for 2022. >>Explore Roofstock's Springfield properties here. Population growthMetropolitan Springfield is among the fastest-growing areas in Missouri, with the population of the city of Springfield increasing by 6% over the past 10 years, according to the most recent census. Suburban counties around Springfield have experienced above average growth, with Christian County and nearby Greene and Taney counties posting the strongest annualized population gains, as reported by KY3 TV. Key Population Stats:
Job MarketLast year the job market in Springfield declined by about 0.10%. However, the economy looks to be recovering. According to the most recent data from the U.S. Bureau of Labor Statistics (BLS April 2022), employment in Springfield is down to just 1.9%. Sectors in Springfield showing the most robust growth include manufacturing, trade and transportation, leisure and hospitality, and education and health services. As business continues to recover, it’s likely that people in nearly every industry can find a job in Springfield. That’s because the region is the econoic hub of a 27-county area spanning across Missouri and Arkansas and encompassing more than 1 million people. Key Employment Stats:
Springfield is ranked as one of the eight best housing markets for real estate investing. According to DoughRoller, homes in Springfield may be undervalued compared to historic income and home price data. This means that rental property in Springfield could provide investors with an extra bonus due to appreciation in addition to recurring cash flow. Key Market Stats:
Attractive renters’ marketThe Springfield housing market is rated by WalletHub as one of the best cities for renters. The ranking uses key criteria including activity in the rental market, affordability, and the quality of life. Historically, Springfield has been ranked as one of the top 10 cities with the country’s biggest monthly rent increases, according to the Springfield News-Leader. The city was also ranked 8th for the least expensive rents in the U.S., indicating the potential for future annual rent increases. Key Market Stats:
Historic price changes & housing affordabilityReal estate investors analyze markets on a macro level to help prioritize when and where to invest. Two readily-available statistics for all real estate markets across the U.S. are the historic changes in housing prices and the affordability of homes. Reviewing data on price changes can help forecast potential property appreciation over the long term, while housing affordability statistics are one indicator of how strong or weak the demand for rental property may be in a given area. Each month Freddie Mac releases its Home Price Index (FMHPI) report with up-to-date data on the change in home prices for all markets across the U.S. The most recent FMHPI from Freddie reveals how home prices in Springfield have been increasing over the last several years:
To analyze housing affordability in a market, investors often turn to the Housing Affordability Index (HAI). The HAI uses 100 as a baseline HAI, then compares the housing affordability in each market to the HAI baseline. When assessing the affordability of housing, researchers consider the amount of median family income needed to purchase an existing single-family home using a conventional mortgage with a 20% down payment. Based on the latest report from Home Town Locator (July 2021), the HAI for the Springfield MSA was 154. This means that the median family has a little more than one and one-half times the income needed to purchase a median priced, single-family resale home in the Springfield, Missouri metro area. Quality of lifeSpringfield is nicknamed the “Queen City of the Ozarks” for very good reasons. It’s a place where living is easy, the job market is growing, with cultural and entertainment options similar to those found in a much bigger city. Key Quality of Life Stats:
Get out the mapWhere to begin your search? Roofstock created a heat map of Springfield based on our Neighborhood Rating, a dynamic algorithm that enables you to make informed investment decisions by measuring school district quality, home values, employment rates, income levels and other vital investment criteria. DARK GREEN: 4-5 star neighborhood Ready to invest in the Springfield housing market? If you haven't already done so, create your free Roofstock account and set up alerts. We'll notify you when we have a Springfield investment property that matches your search criteria. Are homes selling above asking price in Springfield Missouri?In September 2022 more than 73 listings in Springfield, MO were sold above the asking price.
Is Springfield MO a good place to invest in real estate?Springfield is ranked as one of the eight best housing markets for real estate investing. According to DoughRoller, homes in Springfield may be undervalued compared to historic income and home price data.
Are home prices dropping in Missouri?Missouri Housing Market Overview
What is the housing market like right now? In September 2022, home prices in Missouri were up 7.7% compared to last year, selling for a median price.
Is Springfield MO a good place to live?Springfield is a large community with a lot of opportunities. It is a great place to both live and work. Springfield is a small metropolis centered in the Ozarks. While there are many neighboring towns, the small populations give the city an isolated feel as opposed to larger metropolises.
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