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Burlington, Kentucky: Rising Home Values and Strong Ownership in a Resilient Market
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
Burlington, Kentucky, is a vibrant suburban community located in Boone County. With a population of 18,305 in 2022, this city has experienced steady growth over the past decade. Burlington's real estate market has shown interesting trends in homeownership rates, average home prices, and average rent prices, reflecting the dynamic nature of the local housing market.
The homeownership rate in Burlington has fluctuated over the years, with a general upward trend since 2016. In 2013, the homeownership rate stood at 76%, which decreased to 69% in 2016. However, it has since rebounded, reaching 79% in 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $161,002, which has steadily increased to $286,104 by 2022, representing a 77.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in Burlington shows an interesting pattern. Despite the federal interest rate increasing from 0.14% in 2012 to 2.16% in 2019, the homeownership rate in Burlington remained relatively stable, fluctuating between 69% and 76%. This suggests that other local factors may have a more significant influence on homeownership in Burlington than national interest rates.
Renter percentages in Burlington have shown an inverse relationship to homeownership rates. In 2013, the renter-occupied percentage was 22%, which increased to a peak of 29% in 2016 before declining to 21% in 2022. Average rent prices have fluctuated during this period, with some correlation to renter percentages. In 2013, the average rent was $1,332, which decreased to $1,147 in 2019 as the renter percentage declined. However, by 2022, despite a lower renter percentage, the average rent had increased to $1,242, possibly reflecting overall housing market pressures.
In 2023 and 2024, Burlington's housing market continued to evolve. The average home price in 2023 reached $294,780, a 3% increase from 2022. In 2024, it further increased to $298,723, showing a slower but still positive growth rate. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Burlington may continue to rise, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $330,000 to $350,000, assuming a steady growth rate of 2-3% annually. Average rent prices may also see a gradual increase, potentially reaching $1,400 to $1,500 by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Burlington's housing market has demonstrated resilience and growth over the past decade. The city has seen a strong trend towards homeownership, with rates reaching 79% in 2022, despite rising home prices. The inverse relationship between homeownership and renter percentages, coupled with fluctuating rent prices, highlights the dynamic nature of Burlington's housing market. As the city continues to grow, these trends will likely evolve, shaped by local economic conditions, population growth, and broader market forces.
