Loading Content...
Aberdeen, Idaho: Homeownership Surge Amid Doubling Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Aberdeen, located in Idaho, is a small yet dynamic community with a population of 2,833 as of 2022. This city, covering just 1.03 square miles, has experienced significant shifts in homeownership rates and housing prices over the past decade. The overall trend shows an increasing preference for homeownership, coupled with rising average home prices and fluctuating average rent prices.
The homeownership rate in Aberdeen has shown a remarkable upward trend, increasing from 55% in 2016 to 78% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2018, the average home price was $130,722, which rose steadily to $258,045 by 2022, representing a 97% increase over just four years. This correlation suggests that despite rising prices, residents were increasingly able and willing to purchase homes.
The trend in homeownership rates appears to have been influenced by federal interest rates. From 2016 to 2020, interest rates remained relatively low, ranging from 0.4% to 2.16%. This period of low interest rates coincided with the sharp increase in homeownership, from 55% to 77%. The affordability of financing during this period likely encouraged more residents to become homeowners.
Conversely, the percentage of renters in Aberdeen has decreased significantly, from 45% in 2016 to 22% in 2022. Interestingly, this decline in the renter population has been accompanied by fluctuations in average rent prices. The average rent peaked at $613 in 2018 but then decreased to $413 by 2022, a 33% reduction. This decrease in rent prices, coupled with the declining renter population, suggests a shift in the local housing market dynamics, possibly influenced by increased homeownership opportunities.
Looking at the most recent data, the average home price in Aberdeen was $249,418 in 2023 and $244,827 in 2024, indicating a slight cooling in the housing market. This trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Aberdeen may continue to stabilize or experience moderate growth, influenced by the higher interest rate environment. Average rent prices, which have been declining, may start to level off or potentially increase slightly as the rental market adjusts to the reduced supply of rental properties.
In summary, Aberdeen has witnessed a significant shift towards homeownership over the past decade, with homeownership rates increasing by 23 percentage points from 2016 to 2022. This trend has been accompanied by a substantial rise in average home prices, nearly doubling between 2018 and 2022. The rental market has seen a corresponding decline, both in the percentage of renters and in average rent prices. Recent data suggests a potential stabilization in the housing market, likely influenced by rising interest rates. These trends reflect a dynamic and evolving housing landscape in Aberdeen, with implications for both current and future residents.
