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Ashland, Kentucky: Home Values Soar Amid Shifting Ownership Trends in Appalachian Industrial City
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
Ashland, Kentucky, is a vibrant community nestled in the northeastern part of the state. With a population of 23,939 in 2022, this city has experienced some interesting demographic and housing market shifts over the past decade. The homeownership rate has remained relatively stable, hovering around 62-64%, while average home prices and average rent have shown notable fluctuations.
The relationship between homeownership rates and average home prices in Ashland presents an intriguing narrative. In 2013, the homeownership rate stood at 64% with an average home price of $66,180. Despite a slight dip in homeownership to 62% by 2022, average home prices surged to $111,328, marking a substantial 68% increase over this period. This trend suggests that rising home values did not significantly deter homeownership in the city.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, ranging from 0.11% to 0.40%. During this period, homeownership in Ashland maintained a steady rate of 63-64%. As interest rates began to rise more notably from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership to 62%. This aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Ashland have shown a correlative relationship. In 2013, 36% of the population were renters, with an average rent of $711. By 2022, the renter percentage increased slightly to 38%, while the average rent rose to $754, a 6% increase. This modest rise in both renter percentage and average rent suggests a gradual shift towards renting, possibly influenced by the significant increase in home prices during the same period.
The years 2023 and 2024 have brought some changes to Ashland's housing market. In 2023, average home prices slightly decreased to $108,686, a 2.4% drop from 2022. This trend continued into 2024, with average home prices further declining to $103,921. Interestingly, this decline coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market.
Looking ahead, predictive models suggest that average home prices in Ashland may experience a period of stabilization or slight decline over the next five years, influenced by the current high interest rates. Average rent prices, however, are projected to continue their gradual upward trend, potentially reaching around $800-$825 by 2029. This forecast is based on the historical trends and the current economic factors affecting the housing market.
In summary, Ashland has demonstrated resilience in its housing market over the past decade. Despite significant increases in average home prices, homeownership rates have remained relatively stable. The rental market has seen modest growth in both occupancy and prices. The recent cooling of home prices, coupled with rising interest rates, suggests a potential shift in the market dynamics. As Ashland moves forward, it will be crucial to monitor how these trends evolve and impact the overall housing landscape of this Kentucky community.
