Boulder City, Nevada: Rising Home Values and Ownership in a Resilient Desert Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Boulder City, Nevada, is a unique community located approximately 26 miles southeast of Las Vegas. Known for its proximity to the Hoover Dam, this city has experienced interesting shifts in its housing market over the past decade. The ownership percentage has shown a general upward trend, while average home prices have significantly increased. Average rent prices have also risen, albeit more moderately. The homeownership rate in Boulder City has seen a notable increase from 67% in 2016 to 75% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $269,235 in 2016 to $450,022 in 2022, representing a 67% increase over six years. This trend suggests that despite rising home prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or changes in local demographics.
Federal interest rates play a crucial role in homeownership trends. From 2016 to 2022, interest rates fluctuated but remained relatively low, ranging from 0.4% to 1.68%. These low rates likely contributed to the increasing homeownership in Boulder City by making mortgages more affordable. The jump in homeownership from 71% in 2020 to 75% in 2022 coincided with historically low interest rates of 0.38% in 2020 and 0.08% in 2021, which may have incentivized more residents to purchase homes.
The renter population in Boulder City has decreased from 33% in 2016 to 25% in 2022, inversely mirroring the rise in homeownership. During this period, average rent prices increased from $1,221 in 2016 to $1,235 in 2022, a relatively modest 1.1% increase. This slight increase in rent prices, coupled with the decreasing renter population, suggests that many former renters may have transitioned to homeownership, potentially driven by the low interest rates and the desire for more stable housing costs in the face of rising home values.
In 2023, the average home price in Boulder City slightly decreased to $439,554 from the previous year's $450,022. However, 2024 saw a rebound with prices rising to $455,789. This recent uptick occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, predictive models suggest that average home prices in Boulder City may continue to rise over the next five years, potentially reaching around $500,000 by 2029. This projection is based on the overall upward trend observed since 2010, despite occasional fluctuations. Average rent prices are also expected to increase, potentially surpassing $1,400 by 2029, following the gradual upward trajectory seen in recent years.
In summary, Boulder City has experienced a significant shift towards homeownership, with 75% of residents owning their homes in 2022, up from 67% in 2016. This trend has occurred alongside substantial increases in average home prices and modest growth in average rent prices. The interplay between federal interest rates, housing prices, and homeownership rates has been evident, with low interest rates likely contributing to increased homeownership despite rising home values. As the city moves forward, continued monitoring of these trends will be crucial for understanding the evolving housing market in Boulder City.
