Conversely, the percentage of renters in Allendale has decreased significantly, from 16% in 2013 to just 4% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. The average rent increased from $529 in 2013 to a peak of $611 in 2018, before declining to $531 in 2022. This fluctuation in rent prices, despite the decreasing renter population, may be influenced by factors such as overall housing demand and local economic conditions.

In 2023 and 2024, Allendale continued to see changes in its housing market. The average home price reached $132,552 in 2023, a 3.7% increase from 2022. However, in 2024, there was a significant drop to $115,646, representing a 12.8% decrease. This decline coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024.

Looking ahead, predictive models suggest that average home prices in Allendale may continue to face downward pressure in the short term due to high interest rates. However, as the market adjusts, prices could stabilize and potentially see modest growth in the next 3-5 years. Rent prices are expected to remain relatively stable, with potential for slight increases as the rental market tightens due to the high homeownership rate.

In summary, Allendale has experienced a remarkable increase in homeownership rates, reaching 96% in 2022. This trend has been accompanied by fluctuations in both home prices and rent costs. The recent sharp increase in interest rates has led to a decline in average home prices, highlighting the sensitive relationship between these factors. As the community continues to evolve, the interplay between homeownership rates, housing prices, and economic factors will shape the future of Allendale's housing market.