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Cedar Creek: Homeownership Boom Amidst Rising Property Values
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
Cedar Creek, Nebraska, is a small community located in Cass County. This charming village has experienced notable fluctuations in its homeownership rates and housing market over the past decade. The ownership percentage has shown an overall increasing trend, while average home prices have consistently risen. Average rent prices, on the other hand, have displayed a more variable pattern.
The homeownership rate in Cedar Creek has seen a significant upward trend, rising from 89% in 2013 to an impressive 97% in 2022. This increase in homeownership coincides with a steady rise in average home prices. In 2012, the average home price was $172,493, and by 2022, it had nearly doubled to $333,407. This parallel growth suggests a strong correlation between increasing property values and homeownership rates in the village.
Federal interest rates have played a crucial role in shaping homeownership trends in Cedar Creek. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the village saw a steady increase in homeownership from 89% to 96%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. As interest rates began to rise more significantly from 2017 onwards, the homeownership rate in Cedar Creek remained high, suggesting a strong local preference for homeownership despite changing economic conditions.
The renter population in Cedar Creek has correspondingly decreased as homeownership rates have risen. In 2013, 11% of the population were renters, which dropped to just 3% by 2022. Interestingly, average rent prices have not followed a consistent pattern in relation to this decline. Average rent peaked at $1,221 in 2018 when the renter population was at 10%, but then dropped significantly to $876 by 2022 despite the lower supply of rental properties. This suggests that other factors, such as local economic conditions or housing policies, may be influencing rental prices more than supply and demand dynamics alone.
In 2023 and 2024, Cedar Creek continued to see growth in average home prices, reaching $339,668 in 2023 and $347,018 in 2024. This represents a slower rate of increase compared to previous years, possibly influenced by the sharp rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have cooled the rapid home price appreciation seen in earlier years.
Looking ahead, predictive models suggest that average home prices in Cedar Creek will continue to rise over the next five years, but at a more moderate pace. We can expect average home prices to potentially reach around $375,000 by 2029. Average rent prices, which have been declining in recent years, are projected to stabilize and potentially see a slight increase, possibly reaching around $950 per month by 2029.
In summary, Cedar Creek has experienced a remarkable increase in homeownership rates, coupled with substantial growth in average home prices over the past decade. The inverse relationship between homeownership and rental rates highlights the strong preference for homeownership in this community. While federal interest rates have influenced these trends, local factors appear to play a significant role in shaping the village's housing market dynamics. As the community continues to evolve, it will be interesting to observe how these trends develop in response to broader economic conditions and local housing policies.
