Loading Content...
Arlington, Kentucky: Rising Home Values Amid Population Decline
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, Kentucky, a small community, has experienced significant demographic shifts over the past decade. The city has seen fluctuations in homeownership rates and notable changes in average home and rent prices. This analysis explores these trends and their interrelationships. The homeownership rate in Arlington has shown variability from 2013 to 2022. In 2013, the ownership rate was 83%, which declined to 65% by 2018, before rising again to 71% in 2022. Concurrently, average home prices have shown a steady upward trend. From 2014 to 2022, average home prices increased from $46,166 to $82,417, representing a substantial 78% increase over eight years. The relationship between federal interest rates and homeownership rates in Arlington appears to follow the general economic principle that lower interest rates tend to encourage homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively high, above 70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed some fluctuation, dropping to 65% in 2018 before stabilizing around 71% in 2022.
Renter percentages in Arlington have inversely mirrored the homeownership trends. The renter population increased from 17% in 2013 to a peak of 35% in 2018, before decreasing to 29% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $400, which increased to $717 by 2022, representing a 79% increase. It's worth noting that the population of Arlington decreased from 771 in 2013 to 445 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, average home prices in Arlington continued to rise, reaching $87,691 in 2023 and $92,127 in 2024. This represents a 6.5% increase from 2022 to 2023 and a further 5.1% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in Arlington. Based on the historical data and current economic conditions, average home prices could potentially reach around $110,000 to $120,000 by 2029. Similarly, average rent prices may increase to approximately $800 to $850 per month over the same period.
In summary, Arlington has experienced a complex interplay of demographic changes, homeownership fluctuations, and rising housing costs. The city has seen a general trend of increasing home values and rent prices, despite a decreasing population. The relationship between interest rates and homeownership rates aligns with broader economic patterns, with recent increases in interest rates potentially influencing future homeownership trends. As the city moves forward, it will likely continue to see upward pressure on both home prices and rents, which could have significant implications for its residents and local housing market dynamics.
