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Carbondale, Kansas: Rising Home Values and Ownership Rates in a Small 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
Carbondale, a small city in Kansas, has experienced notable shifts in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the city's real estate dynamics.
Homeownership in Carbondale has shown a significant upward trend since 2013. The percentage of owner-occupied homes increased from 64% in 2013 to 72% in 2022, peaking at 79% in 2021. This rise in homeownership coincides with a substantial increase in average home prices. In 2012, the average home price in Carbondale was $89,173, which steadily rose to $176,306 by 2022, representing a 97.7% increase over a decade.
The relationship between federal interest rates and homeownership rates in Carbondale appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates in Carbondale fluctuated between 60% and 64%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership in Carbondale surprisingly continued to increase, reaching 72% in 2022. This suggests that other local factors may have played a significant role in driving homeownership in Carbondale, potentially outweighing the impact of rising interest rates.
Conversely, the percentage of renters in Carbondale has decreased from 36% in 2013 to 28% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $558 in 2013 to $574 in 2022, with some fluctuations in between. The highest average rent was recorded in 2019 at $607. The decrease in the renter population, coupled with rising rent prices, could indicate a tightening rental market or improved economic conditions enabling more residents to transition to homeownership.
In 2023, the average home price in Carbondale reached $181,701, and in 2024, it further increased to $186,375. This continued upward trend in home prices occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially slow down the rate of home price appreciation in the near future.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Carbondale may continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach around $200,000 to $220,000 by 2029. Average rent prices may also continue their upward trajectory, potentially reaching $600 to $650 by 2029, assuming the current trends persist.
In summary, Carbondale has experienced a significant increase in homeownership rates and average home prices over the past decade, while the rental market has seen a decrease in the percentage of renters but an overall increase in average rent prices. The city's housing market has shown resilience, with home prices continuing to rise even in the face of increasing interest rates. However, the recent sharp increase in interest rates may moderate future growth in both home prices and homeownership rates.
