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Cincinnati, Iowa: High Homeownership Rates Amidst Declining Population and Home 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
Cincinnati, Iowa is a small city characterized by a steadily decreasing population and consistently high homeownership rates. In 2022, the population was 656 residents, down from 905 in 2010. Despite this decline, Cincinnati has maintained a remarkably stable homeownership rate, ranging from 84% to 90% between 2013 and 2022. This high rate of ownership has persisted despite fluctuations in average home prices. In 2022, the average home price in Cincinnati was $85,935, which is relatively affordable compared to many other areas in the country.
The relationship between federal interest rates and homeownership rates in Cincinnati appears to have had minimal impact on the city's homeownership trends. Despite interest rate fluctuations, Cincinnati's homeownership rate has remained consistently high, suggesting that local factors, such as the affordability of homes and community preferences, may have a stronger influence on homeownership than national interest rate trends.
Renter percentages in Cincinnati have remained low, ranging from 10% to 16% between 2013 and 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $1,467, which increased to a peak of $1,587 in 2014. However, there has been a general downward trend since then, with the average rent dropping to $915 in 2022. This decline in rent prices, coupled with the decrease in population, suggests a softening rental market in the city.
In 2023, the average home price in Cincinnati decreased to $74,456, and in 2024, it further declined to $68,282. This continuing downward trend in home prices is occurring despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This inverse relationship between interest rates and home prices in Cincinnati is noteworthy and may indicate local economic factors are having a more significant impact on the housing market than national trends.
Looking ahead, predictive models suggest that average home prices in Cincinnati may continue to decline moderately over the next five years if current trends persist. However, this could potentially increase affordability and maintain the city's high homeownership rate. Average rent prices are expected to stabilize or potentially increase slightly as the market adjusts to the population decline and seeks equilibrium.
In summary, Cincinnati, Iowa presents a unique housing market characterized by consistently high homeownership rates, declining population, and decreasing home and rent prices. The city's ability to maintain high ownership levels despite economic fluctuations suggests a resilient local real estate market. The coming years may present opportunities for potential homebuyers as prices continue to adjust, while the rental market may see some stabilization after recent declines.
