Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates likely contributed to the sustained high homeownership rates in Arbyrd, as it made mortgages more affordable for residents. The slight dip in homeownership from 79% in 2014 to 72% in 2017 could be attributed to the gradual increase in interest rates during that period, from 0.09% to 1%.

Renter percentages in Arbyrd have shown a complementary trend to homeownership, ranging from 21% to 28% between 2013 and 2022. Average rent prices have generally increased over this period, rising from $479 in 2013 to $564 in 2022, representing an 18% increase. This upward trend in rent prices occurred despite fluctuations in the city's population, which peaked at 853 in 2014 and declined to 473 by 2022. The increase in average rent prices, even with a decreasing population, suggests other factors such as housing quality improvements or regional economic changes may have influenced rental costs.

In 2023 and 2024, Arbyrd experienced a significant decrease in average home prices. The average home price dropped to $57,756 in 2023 and further declined to $48,632 in 2024. This sharp decline of 28.3% over two years is notable, especially considering the simultaneous rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with lower home prices, present a complex scenario for potential homebuyers in Arbyrd.

Looking ahead, predictive models suggest that average home prices in Arbyrd may continue to decline over the next five years if current trends persist. This forecast is based on the recent sharp decrease in home values and the current high interest rate environment. Average rent prices, however, are predicted to stabilize or increase slightly, reflecting the historical trend of gradual increases even during periods of population decline.

In summary, Arbyrd has maintained a high rate of homeownership despite fluctuations in average home prices and federal interest rates. The recent sharp decline in home prices, coupled with rising interest rates, presents a unique situation for the local housing market. While homeownership has remained stable, the rental market has seen steady increases in average rent prices, even as the population has decreased. These trends suggest a resilient housing market in Arbyrd, adapting to changing economic conditions while maintaining a strong preference for homeownership among its residents.