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Bellevue, Kentucky: Home Values Double as Ownership Declines in Historic River 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
Bellevue, Kentucky, a charming city located along the Ohio River, offers a unique blend of small-town charm and urban amenities. Over the past decade, this city has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Bellevue has shown a gradual decline from 2013 to 2022. In 2013, 74% of residents owned their homes, but by 2022, this figure had decreased to 65%. This downward trend in homeownership coincides with a significant increase in average home prices. In 2013, the average home price in Bellevue was $109,198, which steadily rose to $219,133 by 2022, representing a substantial 100.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Bellevue follows a well-established pattern. From 2013 to 2015, when interest rates were historically low (ranging from 0.11% to 0.13%), homeownership rates remained relatively stable, hovering around 70-74%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% by 2022, homeownership rates experienced a more pronounced decline, dropping to 65% in 2022. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
As homeownership rates declined, the percentage of renters in Bellevue increased from 26% in 2013 to 35% in 2022. Interestingly, average rent prices have shown some fluctuation during this period. In 2013, the average rent was $872, which peaked at $901 in 2021 before dropping to $777 in 2022. This recent decrease in average rent, despite the growing renter population, could be attributed to various factors such as increased housing supply or economic pressures affecting the local rental market.
Looking at the most recent data, the average home price in Bellevue continued to rise, reaching $222,153 in 2023 and $227,347 in 2024. This upward trajectory persists despite the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make home financing more expensive, yet Bellevue's housing market appears to remain robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Bellevue will continue to rise, albeit potentially at a slower rate due to the higher interest rate environment. Average rent prices may stabilize or show moderate increases as the rental market adjusts to the growing renter population and overall economic conditions.
In summary, Bellevue has experienced a shift towards a higher proportion of renters over the past decade, coupled with substantial increases in average home prices. Despite recent rises in interest rates, the housing market in Bellevue remains strong, with continued growth in home values. These trends reflect the city's evolving demographics and its attractiveness as a residential area, suggesting a dynamic and resilient real estate market in the coming years.
