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Benton, Kentucky: Rising Home Values Amid High Ownership Rates
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
Benton, Kentucky, is a small urban community located in Marshall County. With a population of 6,855 as of 2022, this city has experienced fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The city has maintained a relatively high rate of homeownership, while both housing and rental markets have shown interesting trends.
The homeownership rate in Benton has remained consistently high, ranging from 71% to 80% between 2013 and 2022. This trend corresponds with the steady increase in average home prices during the same period. In 2013, the average home price was $83,887, and by 2022, it had risen to $133,606, representing a 59.3% increase over nine years. The peak of homeownership was reached in 2021 and 2022, with 80% of residents owning their homes, coinciding with a significant jump in average home prices from $121,902 in 2021 to $133,606 in 2022.
Federal interest rates have played a role in shaping homeownership trends in Benton. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership rates remained relatively stable, between 71% and 78%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased, reaching 80% in 2021 and 2022. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates in Benton.
The rental market in Benton has shown some volatility over the years. The percentage of renters fluctuated between 20% and 28% from 2013 to 2022. Average rent prices have seen significant changes, starting at $433 in 2013, peaking at $715 in 2021, and then decreasing to $642 in 2022. Notably, there was a sharp increase in average rent from $428 in 2014 to $674 in 2015, a 57.5% jump. This coincided with a decrease in homeownership from 77% to 71%, suggesting a potential shift in the housing market dynamics during that period.
In 2023 and 2024, Benton's housing market continued to show growth. The average home price reached $145,187 in 2023 and further increased to $155,286 in 2024, representing a 16.2% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the local housing market has remained robust.
Looking ahead, based on the historical data and recent trends, we can project that average home prices in Benton may continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate might see average home prices reaching around $180,000 to $190,000 by 2029. For average rent prices, the trend has been more volatile, but if recent patterns hold, we might expect average rents to fluctuate between $650 and $800 over the next five years, with potential for gradual increases.
In summary, Benton has maintained a strong homeownership rate despite rising home prices, demonstrating the community's resilience and preference for homeownership. The rental market has shown more variability, with significant fluctuations in both rental rates and average rents. The recent surge in home prices, even in the face of higher interest rates, suggests a robust local housing market that may continue to grow in the coming years, albeit potentially at a more moderate pace.
