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Auburn's Soaring Home Values and Ownership: A Decade of Housing Market Dynamics
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, Georgia, a small city with a population of 13,605 as of 2022, is located in Barrow and Gwinnett counties. Over the past decade, Auburn has experienced significant changes in homeownership rates and housing prices. The city has generally seen an increase in homeownership rates alongside rising average home prices, while average rent prices have shown fluctuations.
Homeownership in Auburn has demonstrated a notable upward trend, especially in recent years. The homeownership rate was 81% in 2013, which slightly decreased to 75% in 2016. However, since then, there has been a consistent increase, reaching 85% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price in Auburn was $108,223, which has more than tripled to $330,269 by 2022. This substantial growth in home values may have incentivized more residents to invest in homeownership, despite the potential challenges of affordability for some buyers.
The relationship between federal interest rates and homeownership rates in Auburn presents an interesting dynamic. From 2013 to 2020, when interest rates were generally low (ranging from 0.09% to 2.16%), homeownership rates in Auburn remained relatively stable, hovering around 80%. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), Auburn surprisingly saw an increase in homeownership to 85%. This trend suggests that local factors, such as the city's economic conditions or housing market dynamics, may have a stronger influence on homeownership rates than national interest rates in this particular case.
The rental market in Auburn has shown inverse trends to homeownership. The percentage of renters decreased from 25% in 2016 to 15% in 2022. Interestingly, average rent prices have not followed a consistent pattern. In 2013, the average rent was $1,219, which increased to $1,353 in 2021, but then decreased to $1,134 in 2022. This drop in average rent coincided with the lowest percentage of renters, suggesting a potential oversupply of rental properties or a shift in the local rental market dynamics.
As of 2024, the average home price in Auburn has risen to $352,998, continuing the upward trend observed in previous years. This increase has occurred despite the federal interest rate rising to 5.33% in 2024, which typically would be expected to cool the housing market. The persistence of rising home prices in the face of higher interest rates suggests strong local demand for housing in Auburn.
Looking ahead, based on the historical trends and current market conditions, we can project that average home prices in Auburn may continue to rise over the next five years, potentially reaching around $425,000 by 2029. However, this growth rate may moderate compared to the rapid increases seen in recent years. Average rent prices, which have shown more volatility, might stabilize and gradually increase to approximately $1,400 per month by 2029, assuming the rental market adjusts to the city's changing demographics and housing preferences.
In summary, Auburn has experienced a significant increase in homeownership rates and average home prices over the past decade, with a particularly strong upward trend in recent years. This growth has persisted even as federal interest rates have risen, indicating robust local demand for housing. The rental market, conversely, has seen a decrease in the proportion of renters and fluctuating average rent prices. These trends suggest a strong preference for homeownership in Auburn, potentially driven by the city's economic growth and the perception of real estate as a valuable long-term investment.
