Do Home Prices In A Growth Market Like Wentzville Perform Better Than An Established Market?

One of the things that often attract homebuyers to a new or expanding area is the availability of new homes at affordable prices.  This is something that is hard to find in older areas that have mature real estate markets due to the lack of available ground and the cost of the ground when it does become available.  This is, no doubt, one of the things that have been responsible for the population growth in Wentzville in spite of the fact it is in the farthest west most area of St Charles County.  As a result, the city of Wentzville has seen its population grow from 5,733 in 1998 to 39,414 currently, a growth of 587% over the 20 year period.

One topic that often comes up in conversation about new and emerging markets, is whether homebuyers will benefit in those areas, as they mature and grow, from a higher appreciation rate than a typical established market.  In order to examine this, I’m going to compare the Wentzville housing market with that of Ballwin, a municipality in St Louis County similar in size to Wentzville, with a current population of 30,161 which is just 15% greater than the 1998 population of 26, 205.