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Cherokee, Oklahoma: Rising Home Values Amidst Ownership Shifts
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
Cherokee, Oklahoma, a small community with a population of 1,853 residents in 2022, has experienced notable changes in homeownership rates and housing prices. These changes reflect broader economic trends and local market dynamics. The city's homeownership rate has shown resilience over the past decade, increasing slightly from 72% in 2016 to 78% in 2022. This trend coincides with a significant rise in average home prices, which grew from $41,451 in 2016 to $61,479 in 2022, representing a 48% increase over six years.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2016 to 2022 saw relatively low interest rates, ranging from 0.4% to 1.68%. These low rates likely contributed to the sustained high levels of homeownership in Cherokee by making mortgages more affordable. The slight increase in homeownership from 76% in 2020 to 78% in 2022 aligns with the historically low interest rates during this period, which bottomed out at 0.08% in 2021.
Renter percentages in Cherokee have inversely mirrored homeownership rates, decreasing from 28% in 2016 to 22% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. The average rent increased from $689 in 2016 to $806 in 2022, a 17% rise. This increase in rent prices, despite a shrinking renter population, suggests a tightening rental market, possibly due to limited rental inventory or improved quality of available rental units.
In 2023 and 2024, Cherokee experienced a shift in its housing market dynamics. The average home price decreased to $54,586 in 2023 and slightly recovered to $55,063 in 2024. This represents a significant cooling compared to the peak of $61,479 in 2022. Concurrently, federal interest rates sharply increased to 5.02% in 2023 and 5.33% in 2024, potentially contributing to the moderation in home prices by reducing buyer demand.
Looking ahead, predictive models suggest a potential stabilization in home prices over the next five years, with modest growth expected. Average home prices may reach around $60,000 by 2029, assuming steady economic conditions and gradual adjustments in interest rates. Rent prices are projected to continue their upward trajectory, potentially reaching an average of $900 per month by 2029, driven by ongoing demand for rental properties and overall inflation.
In summary, Cherokee has demonstrated a robust homeownership market with increasing rates of owner-occupied housing and rising home values from 2016 to 2022. The recent cooling in home prices, coupled with higher interest rates, suggests a market adjustment phase. The rental market, while smaller, has seen consistent price increases. These trends reflect the complex interplay between local economic factors, national monetary policy, and demographic shifts in this Oklahoma community.
