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Bellevue, Idaho: Soaring Home Values and Ownership in Wood River Valley's Gem
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
Bellevue, Idaho, a charming city nestled in the Wood River Valley, has experienced notable shifts in its housing market over the past decade. This picturesque community has seen a significant increase in homeownership rates, accompanied by substantial growth in average home prices and fluctuating average rent prices.
The trend in homeownership in Bellevue has been decisively upward. In 2013, the homeownership rate stood at 63%, but by 2022, it had climbed to an impressive 84%. This substantial increase coincided with a dramatic rise in average home prices. In 2013, the average home price in Bellevue was $208,257, and by 2022, it had soared to $637,817, representing a remarkable 206% increase over this period. The most significant year-over-year jump occurred between 2020 and 2021, when average home prices surged from $420,752 to $541,256, a 29% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in Bellevue. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the steady increase in homeownership, making mortgages more affordable for potential buyers. The sharp rise in homeownership from 77% in 2019 to 90% in 2021 coincided with interest rates dropping to a mere 0.08% in 2021, the lowest in the observed period.
As homeownership rates climbed, the percentage of renters in Bellevue naturally decreased. In 2013, 37% of residents were renters, but by 2022, this figure had dropped to just 16%. Interestingly, average rent prices did not follow a consistent pattern during this period. In 2013, the average rent was $1,287, and it fluctuated over the years, reaching a low of $973 in 2018 before climbing to $1,333 in 2022. The most significant increase in average rent occurred between 2020 and 2021, jumping from $1,385 to $1,609, a 16% rise, despite the renter population decreasing from 17% to 10% during the same period.
Looking at the most recent data, average home prices in Bellevue experienced a slight dip in 2023, decreasing to $625,564 from the 2022 peak of $637,817. However, in 2024, prices have rebounded slightly to $635,896. This modest recovery comes despite federal interest rates rising significantly to 5.33% in 2024, up from 5.02% in 2023. These higher interest rates may impact future homebuying activity in the city.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Bellevue will continue to rise, albeit at a more moderate pace than seen in recent years. The current high interest rates may slow down price growth in the short term, but the city's desirability and limited housing supply could sustain an upward trend. Average rent prices are expected to increase gradually, potentially driven by those priced out of the homebuying market due to higher interest rates and home prices.
In summary, Bellevue has witnessed a remarkable transformation in its housing market over the past decade. The shift towards higher homeownership rates, coupled with substantial increases in average home prices, reflects the city's growing appeal. While the rental market has shrunk, average rent prices have remained relatively stable with recent upticks. The interplay between federal interest rates, homeownership rates, and housing prices will continue to shape Bellevue's real estate landscape in the coming years.
