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Average Home Values and Ownership in Zip Code 68933: Clay Center's Resilient Housing Market
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
Clay Center, Nebraska, zip code 68933, is a small city with a population of 1,051 as of 2022. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight increase in homeownership, while average home prices have risen significantly, and average rent prices have shown moderate growth.
Homeownership in Clay Center has seen a general upward trend, with some fluctuations. In 2013, the homeownership rate was 81%, which decreased to 75% in 2016. However, it rebounded to 82% by 2022. This trend correlates with the rise in average home prices, which increased from $95,502 in 2016 to $149,626 in 2022, representing a 56.7% increase over six years. The relationship between homeownership rates and average home prices suggests that despite rising costs, residents have maintained a strong preference for homeownership.
Federal interest rates have played a role in homeownership trends in Clay Center. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.40%), homeownership rates fluctuated but remained relatively high. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 77-79%. The low interest rate environment in 2020 and 2021 (0.38% and 0.08% respectively) coincided with an increase in homeownership to 84% in 2021, likely due to more affordable financing options.
Renter percentages in Clay Center have generally declined as homeownership increased. In 2013, the renter percentage was 19%, which rose to 25% in 2016 before decreasing to 18% in 2022. Average rent prices have shown a steady increase, rising from $501 in 2013 to $613 in 2022, a 22.4% increase over nine years. This growth in average rent prices, while significant, has been less dramatic than the increase in average home prices.
In 2023, the average home price in Clay Center reached $156,202, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $166,953, while interest rates slightly rose to 5.33%. This continued appreciation in home values, despite higher interest rates, suggests strong demand in the local housing market.
Looking ahead, predictive models forecast a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are expected to increase by approximately 3-5% annually, potentially reaching around $200,000 by 2029. Average rent prices are projected to grow at a more modest rate of 2-3% per year, potentially reaching about $700 by 2029.
In summary, Clay Center has experienced a strengthening housing market characterized by increasing homeownership rates and rising property values. The relationship between federal interest rates and homeownership has been evident, with lower rates generally corresponding to higher ownership levels. Despite rising costs, the preference for homeownership remains strong in this community, with renters comprising a minority of the population. The steady growth in both average home prices and rent prices suggests a robust and desirable local real estate market.
