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Central Bench: Rising Home Values and Shifting Ownership in a Dynamic Idaho Neighborhood
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
Central Bench, a neighborhood in Boise City, Idaho, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates and substantial increases in average home and rent prices, reflecting broader economic and demographic changes in the region. The neighborhood has generally followed a trend of decreasing homeownership, rising average home prices, and increasing average rent prices.
The relationship between homeownership percentage and average home prices in Central Bench reveals an interesting pattern. In 2013, the homeownership rate was 40%, with an average home price of $111,374. As average home prices steadily increased, reaching $235,673 in 2019, the homeownership rate fluctuated but ultimately rose to 41%. This suggests that despite rising home prices, some residents were still able to enter the housing market. However, the most dramatic increase in average home prices occurred between 2020 and 2021, jumping from $276,731 to $376,543, a 36% increase in just one year. During this period, the homeownership rate remained relatively stable at around 40%, indicating that the rapid price increase did not immediately impact homeownership rates.
Federal interest rates have played a role in homeownership trends in Central Bench. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with fluctuations in homeownership rates, but generally maintained levels between 31% and 41%. The historically low interest rates during this time likely contributed to maintaining homeownership levels despite rising home prices, as lower rates made mortgages more affordable for potential buyers.
Renter percentages and average rent prices in Central Bench have shown a clear correlation. In 2013, 60% of residents were renters, with an average rent of $767. As the renter percentage increased to 69% in 2016, average rent also rose to $824. However, by 2022, the renter percentage had decreased slightly to 59%, while average rent continued to climb, reaching $1,067. This suggests that even as the proportion of renters decreased, demand for rental properties remained strong, driving up average rent prices. The population fluctuations, from 5,288 in 2013 to 5,432 in 2022, may have contributed to the rental market dynamics, with periods of population growth potentially increasing demand for rental properties.
In 2023 and 2024, Central Bench experienced a shift in the housing market. The average home price in 2023 was $382,373, showing a slight decrease from the 2022 peak of $410,713. In 2024, there was a modest increase to $390,034. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the stabilization of home prices, as higher borrowing costs typically cool housing demand.
Looking ahead, predictive models suggest that average home prices in Central Bench may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in 2020-2021. Average rent prices are projected to maintain an upward trajectory, driven by ongoing demand for rental properties in the area. However, the rate of increase may be tempered by economic factors and potential new housing developments.
In summary, Central Bench has undergone significant changes in its housing market. The neighborhood has seen a general trend of rising average home and rent prices, with homeownership rates showing resilience despite these increases. The recent stabilization of home prices, coupled with higher interest rates, marks a new phase in the local real estate market. These trends reflect the complex interplay of economic factors, population dynamics, and housing demand in shaping the neighborhood's residential landscape.
