Loading Content...
Arlington, Iowa: Rising Home Values and Ownership in a Shifting Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Arlington, Iowa, is a small city that has experienced significant demographic and housing market changes over the past decade. Located in Fayette County, this charming Midwestern community has seen fluctuations in its population, homeownership rates, and housing prices. The city has demonstrated a general trend towards increased homeownership, with average home prices rising steadily in recent years.
Homeownership in Arlington has shown a strong upward trend, increasing from 71% in 2013 to an impressive 86% in 2022. This substantial rise in homeownership coincides with a notable increase in average home prices. In 2016, the average home price in Arlington was $103,677, and by 2022, it had risen to $162,014, representing a 56% increase over six years. This correlation suggests that as home values appreciated, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision.
The relationship between federal interest rates and homeownership rates in Arlington appears to follow established trends. As interest rates remained relatively low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates in the city increased. This aligns with the general principle that lower interest rates make mortgages more affordable, encouraging home buying. The sharp increase in homeownership from 79% in 2021 to 86% in 2022, despite a rise in interest rates to 1.68%, might indicate a rush to purchase homes before anticipated further rate increases.
Renter percentages in Arlington have inversely mirrored the homeownership trend, decreasing from 29% in 2013 to 14% in 2022. Interestingly, average rent prices have also declined during this period, from $620 in 2013 to $438 in 2022, a 29% decrease. This decline in rent prices, coupled with the decreasing renter population, suggests a shift in the local housing market dynamics. The population decrease from 631 in 2013 to 597 in 2022 may have contributed to reduced rental demand, leading to lower rent prices.
In 2023, the average home price in Arlington reached $170,437, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $173,391, while interest rates have risen to 5.33%. These figures indicate a continuing upward trend in home values, despite higher borrowing costs.
Looking ahead, predictive models suggest that Arlington's housing market will likely continue its upward trajectory. Over the next five years, average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $200,000 by 2029. Rent prices, which have been declining, may stabilize or see modest increases of 1-2% per year, potentially reaching around $460 by 2029.
In summary, Arlington, Iowa, has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. The decline in the renter population and average rent prices reflects changing market dynamics. Despite rising interest rates, the housing market remains robust, with continued growth expected in the coming years. These trends paint a picture of a city transitioning towards a more owner-occupied housing landscape, with potential implications for community stability and local economic development.
