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Bellevue, Nebraska: Rising Home Values and Steady Ownership in a Growing 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, Nebraska, a vibrant city located in the eastern part of the state, has experienced significant growth and changes in its housing market over the past decade. Known for its strong community spirit and proximity to Offutt Air Force Base, Bellevue has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local market conditions.
The homeownership rate in Bellevue has shown a slight decline over the years, starting at 69% in 2013 and decreasing to 66% by 2022. This trend coincides with a substantial increase in average home prices, which rose from $147,105 in 2010 to $257,448 in 2022, representing a 75% increase over 12 years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Bellevue. In 2013, when homeownership was at 69%, interest rates were at a low 0.11%. As interest rates remained low through 2020, hovering around 0.38%, homeownership rates stabilized between 65-66%. This period of low interest rates likely helped maintain relatively high levels of homeownership despite rising home prices, as financing remained affordable for many buyers.
The rental market in Bellevue has seen a corresponding increase in both the percentage of renters and average rent prices. The proportion of renters grew from 30% in 2013 to 34% in 2022. During this same period, average rent prices increased from $1,042 in 2013 to $1,202 in 2022, a 15.4% rise. This growth in the rental sector may be attributed to the city's population increase from 65,390 in 2013 to 70,688 in 2022, creating more demand for rental properties.
In 2023 and 2024, Bellevue's housing market continued its upward trajectory. The average home price in 2023 reached $274,259, and by 2024 it further increased to $284,402. This represents a 10.4% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and homeownership rates.
Looking ahead, predictive models suggest that average home prices in Bellevue will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the ongoing demand for housing. The city may see a slight shift towards more renters if home prices outpace income growth and interest rates remain elevated.
In summary, Bellevue has experienced a notable increase in both home values and rental prices over the past decade, accompanied by a slight shift from homeownership to renting. The interplay between federal interest rates, population growth, and housing supply will continue to shape the city's real estate landscape in the coming years, presenting both opportunities and challenges for residents and potential homebuyers in this dynamic Nebraska city.
