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Amherst, Nebraska: Rising Home Values Amid Population Decline
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Amherst, Nebraska, is a small community that has experienced fluctuations in population and housing dynamics over the past decade. The ownership percentage has remained relatively stable, while average home prices and average rent prices have shown varying trends. The homeownership rate in Amherst has remained fairly consistent, with minor fluctuations between 79% and 86% from 2013 to 2022. Despite these small changes, there isn't a clear correlation between ownership percentages and average home prices. The average home price data is only available from 2021 onwards, showing an increase from $303,255 in 2021 to $345,888 in 2022, a 14% rise. This increase in average home prices occurred while the homeownership rate remained relatively stable at around 81%.
Federal interest rates have played a role in homeownership trends. From 2013 to 2020, interest rates remained low, ranging from 0.08% to 2.16%. During this period, homeownership rates in Amherst were generally high, between 80% and 86%. This aligns with the trend that lower interest rates tend to encourage homeownership due to more affordable financing options. However, as interest rates began to rise significantly in 2022 (1.68%) and 2023 (5.02%), the homeownership rate in Amherst remained relatively stable at 81% in 2022.
The renter percentage in Amherst has shown slight variations, ranging from 14% to 21% between 2013 and 2022. Average rent prices have fluctuated during this period, with no clear long-term trend. The lowest average rent was $488 in 2017, while the highest was $619 in 2013. Interestingly, the years with the highest renter percentages (19-21% from 2017 to 2022) did not consistently correspond with the highest average rent prices. The population decreased from 689 in 2013 to 563 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, average home prices in Amherst continued to rise. The average home price reached $372,062 in 2023 and further increased to $387,976 in 2024, representing a 7.6% and 4.3% year-over-year increase, respectively. This occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to slow down home price growth.
Looking ahead, based on the recent trends, we can forecast that average home prices in Amherst may continue to rise over the next five years, albeit at a potentially slower rate due to the higher interest rates. Average rent prices might see moderate increases as well, possibly stabilizing around the $600-$650 range. However, these projections could be influenced by various factors such as local economic conditions, population changes, and broader market trends.
In summary, Amherst has maintained a high homeownership rate despite fluctuations in average home prices and interest rates. The rental market has shown variability in both renter percentages and average rent prices. The recent years have seen consistent growth in average home prices, even in the face of rising interest rates, suggesting a strong local housing market.
