Housing challenges outlined for city council in Republic

Veteran builder describes changes in marketplace
The housing market fundamentally changed over the past five years. To secure a better sense of new conditions and the challenges they represent, the Republic City Council recently had Alex Clark, owner of 417 Homes, describe the marketplace and suggest how the city can best position itself to respond.
Clark, who has been in the housing business since 2003 and worked as a broker since 2006, ran through recent home sales and trends. In 2023, the Multiple Listing Service showed home sales in Republic totaled $111.6 million, and $43 million – almost half – came from new construction. Through July 1, 2024, sales seemed on a similar track, having reached $51.8 million in sales from 192 single-family homes in the city, compared to 413 homes sold in all of 2023.
Hot market — Homes selling faster in 2024
The average number of days a house remained on the market in 2023 was 59. In 2024, that number dropped to 28 days, thanks in part to lower interest rates. Many houses never even go on the market but are sold without advertising. Houses sold at more than 99 percent of the listed price in both years, reflecting a very hot market.
Over the past six years, more than 400 homes a year have sold in Republic, shooting up to a high of 590 in 2021. The average price of a home in 2018 was $165,514, built at $94 a square foot. In 2024, the average price is $274,799, built at $166 a square foot.
Republic did not lead the area in sales. In 2023, 527 homes sold in Nixa, where average home prices ran $346,436, “much higher” though costs were the same. Ozark had 373 homes sold in the same period at an average price of $320,588. There were 101 homes sold in Willard and 89 in Rogersville, both much smaller towns. Clark observed the sale of high-end houses boosted the average sale prices. Nixa in particular has more higher-end homes available, as well as second and third-tier homes that are higher priced than in Republic.
The median price of a home sold in Republic has been $246,000. Clark observed that of the 130 homes on the market at the time of his presentation, only 13 were available below that median price.
Prices up, volume down in town
The cost to build, however, is not unique to Republic. According to Realtor Property Resources, prices were “on pace” with the rest of Greene County and the nation. Only twice in the past 100 years, he noted, have home prices significantly fallen. That was during the Great Depression and the housing bubble in 2009.
“We’re still seeing an increase in prices though volume is down,” Clark said. “I used to buy a three-quarter-inch Gator pex valve for $8 or $9. Now it costs $27. People ask when is this bubble going to burst. There’s nothing to burst. When the actual bubble costs that much to make, you can’t burst that bubble. I look at 100-year trends. We’re just catching up.”
“We have to start looking at some alternative development,” he said. “The median household income today falls between $50,000 and $75,000, not that different from what it was 25 years ago, but home prices have quadrupled.
“If you have a car payment, college debt, a little credit card debt, and you’re looking to see what household income you’d need to qualify to buy a $246,000 average house, you’d need to have an average household income of $65,000, and that’s if you only have one car payment and minimal bills. You can see where we’re priced out. We need to develop different types of housing for people if we want that beginning family to come into Republic and move up.”
Starter homes $189K
Clark indicated sales continued despite elevated costs because Republic had the supply to sell. He noted that in 2021, the value of homes went up 24 percent. People presently can sell houses that have received minimal maintenance at a profit. He described “Tapjac” homes, a basic house built 30 years ago for $34,000, that sold for $89,000 in 2003. That kind of “starter house” now sells for $189,000.
Clark saw Republic had many advantages in today’s market, such as high demand. However, that can work as a disadvantage as well, since rental property and “decent priced” houses sell immediately. He noted there are no townhouses for sale to own in Republic presently, though some are available to rent.
Clark praised the city’s low bureaucracy, job opportunities, available space and schools. He noted people who moved to Nixa from Springfield are moving back because they are tired of the commute twice a day on Highway 160.
Shortage of mid-range homes in Republic
Nonetheless, Clark identified weaknesses in Republic’s housing market. A mid-range home now sells in the $350,000 to $550,000 price, and there is a shortage of available offerings there. Nice high-end homes are coming on the market over $500,000, but are smaller, running 2,200 to 3,000 square feet. He noted Republic is likely 1,500 units short of low-income senior housing, and has none at the present time.
Clark saw a lack of diversity among developers. Around 25 years ago, a “big builder” would erect 20 houses a year. “That’s nothing in today’s society,” he said. Subdivisions used to have up to 10 builders at work, offering a variety of styles in their homes. Currently, developers are unwilling to sell lots in a subdivision they created, seeing that as lost profit. As a result, subdivisions look like the same building stamped in place again and again.
“Try to find a multi-family lot,” he said. “I don’t know how to do that, unless I find the property and develop it myself.”
Republic called a “vinyl-sided city”
Clark encouraged the council to look to local, state and federal partners, developers and business owners to partner in making improvements to existing subdivisions. He suggested getting developers in designing subdivisions to offset the expense of maintaining right-of-ways, and taking a long look at the appearance of subdivisions, such as having consistent fencing instead of 15 different privacy fences on a block. Clark said he had heard Republic called “a vinyl-sided city,” and asked, “Is that what you want?”
He urged greater planning, such as requiring sidewalks and buffer zones between high-density housing. He agreed that could force up the cost of developing a subdivision. However, builders faced with interest payments when houses stay on the market would see market pressures forcing them to make more accommodating neighborhoods.
“There’s a lot of things going on in this world,” Clark said. “ A lot of people come to Republic and say, ‘Hey, this feels like home. This feels like a little bit of old-fashioned to me.’ Not that we’re not changing. We’re just doing it a different way that’s more responsible for our community.”
Clark challenged council members to boost its code enforcement to sustain the quality of its neighborhoods. The quality of neighborhoods, he stressed, does not divide by family income. “I’ve been in near-$1 million homes that have been gross,” he said. “Pride in homes has been declining. Some people are just using homes like they’re disposable. How do you protect neighborhoods from declining? Through code enforcement and the design of those neighborhoods, controlling what you want your community to look like.”