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Auburn, Kentucky: Rising Home Values and Ownership Rates in a Small 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
Auburn, Kentucky, a small city with a population that peaked at 5,698 in 2018, has experienced notable changes in homeownership rates and housing prices over the past decade. These changes reflect broader economic trends and local market dynamics. The homeownership rate in Auburn has shown an overall increase from 73% in 2019 to 84% in 2022. This significant rise coincides with a substantial increase in average home prices, which grew from $135,502 in 2019 to $193,906 in 2022, representing a 43% increase over just three years. This trend suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or local initiatives promoting homeownership. The relationship between federal interest rates and homeownership rates in Auburn shows an interesting pattern. As interest rates remained historically low from 2010 to 2021, ranging from 0.08% to 0.4%, the homeownership rate in Auburn generally increased. The most dramatic rise in homeownership occurred between 2019 and 2022, jumping from 73% to 84%, while interest rates were at their lowest, bottoming out at 0.08% in 2021 before beginning to rise in 2022.
Conversely, the percentage of renters in Auburn has decreased from a high of 27% in 2019 to 16% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. In 2013, the median rent was $738, which decreased to $619 in 2015 before rising again to $697 in 2022. The peak average rent of $800 was observed in 2021, coinciding with the lowest federal interest rate of 0.08%. This suggests that even as fewer residents were renting, those who did faced higher costs.
Looking at the most recent data, the average home price in Auburn continued its upward trajectory, reaching $203,600 in 2023 and $217,113 in 2024. This represents a further 12% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Auburn to continue rising, albeit potentially at a slower rate due to higher interest rates. If the current trajectory holds, average home prices could reach approximately $250,000 to $270,000 by 2029. Rent prices may also continue to increase, potentially reaching an average of $850 to $900 per month in the same timeframe, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, Auburn has experienced a significant increase in homeownership rates and average home prices over the past decade, particularly from 2019 to 2022. This trend occurred during a period of historically low interest rates, which likely facilitated easier access to mortgages. The rental market has seen a decrease in the percentage of renters but an increase in average rent prices. As interest rates have risen sharply in 2023 and 2024, it will be crucial to monitor how these changes affect homeownership rates and housing affordability in Auburn in the coming years.
