Bull Shoals, Arkansas: Rising Home Values and High Ownership Rates in a Small City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Bull Shoals, located in Arkansas, is a small community that has experienced fluctuations in its population and housing market over the past decade. The city has maintained a consistently high rate of homeownership, with a general upward trend in average home prices and varying patterns in average rent prices. This analysis will explore the intricate relationship between ownership rates, housing prices, and rental trends in Bull Shoals.
The homeownership rate in Bull Shoals has shown a gradual increase over the years, rising from 72% in 2013 to 76% in 2022. This upward trend in homeownership coincides with a significant increase in average home prices. In 2016, the average home price in Bull Shoals was $117,302. By 2022, this figure had risen to $178,049, representing a substantial 51.8% increase over six years. This positive correlation between homeownership rates and home prices suggests a strong local housing market and growing demand for property ownership in the area.
Federal interest rates have played a role in shaping homeownership trends in Bull Shoals. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership in Bull Shoals increased from 72% to 74%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Bull Shoals continued to climb, reaching 76% in 2022. This suggests that local factors may have had a stronger influence on homeownership than national interest rate trends.
Renter percentages in Bull Shoals have inversely mirrored the homeownership trend, decreasing from 28% in 2013 to 24% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $417, which decreased to $381 in 2015. There was a sharp drop to $177 in 2017, followed by a recovery to $347 in 2018. Since then, average rent prices have been on an upward trajectory, reaching $669 in 2022. This represents a 60.4% increase from 2013 to 2022, despite the fluctuations in between. The population of Bull Shoals has also varied, from 2,374 in 2013 to 2,294 in 2022, which may have influenced rental demand and prices.
In 2023, the average home price in Bull Shoals reached $189,249, continuing the upward trend observed in previous years. This represents a 6.3% increase from 2022. The federal interest rate in 2023 was 5.02%, a significant jump from the previous year. Moving into 2024, the average home price has further increased to $192,626, while the federal interest rate has risen slightly to 5.33%. These figures indicate a resilient housing market in Bull Shoals, with home prices continuing to appreciate despite higher interest rates.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $220,000 to $230,000 by 2029. Average rent prices are also expected to continue their upward trajectory, potentially reaching $800 to $850 per month by 2029, assuming current economic conditions and local market dynamics persist.
In summary, Bull Shoals has demonstrated a robust housing market characterized by increasing homeownership rates and rising home values. The city has maintained a high proportion of owner-occupied housing despite fluctuations in population and economic conditions. The rental market, while smaller, has shown resilience with recent increases in average rent prices. These trends, combined with the latest data from 2023 and 2024, suggest a continued strong housing market in Bull Shoals for the foreseeable future.
