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Cleburne's Housing Market: Rising Home Values and Steady Ownership Amidst Economic 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
Cleburne, a city in Texas located approximately 30 miles south of Fort Worth, has experienced significant changes in its housing market over the past decade. Known for its rich history and small-town charm, Cleburne has seen notable shifts in homeownership rates and substantial increases in both average home prices and rent prices, reflecting broader economic trends and local market dynamics. Homeownership rates in Cleburne have shown a slight overall increase from 2013 to 2022. In 2013, 66% of residents were homeowners, and this figure remained relatively stable until 2015 when it dipped to 64%. The ownership rate reached its lowest point of 63% in 2016 and 2017 before rebounding. By 2022, the homeownership rate had climbed back to 67%, indicating a resilient housing market. Concurrently, average home prices in Cleburne have seen a substantial increase. In 2013, the average home price was $97,889, and by 2022, it had risen dramatically to $260,429, representing a 166% increase over this period.
The relationship between federal interest rates and homeownership rates in Cleburne follows a general trend seen nationwide. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates in Cleburne actually decreased slightly. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized and then increased. This could be attributed to residents rushing to purchase homes before rates climbed further. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership to 68% in 2021, the highest level in the dataset.
Renter percentages in Cleburne have fluctuated inversely to homeownership rates, as expected. The percentage of renters increased from 34% in 2013 to a peak of 37% in 2016 and 2017, before declining to 33% by 2022. Average rent prices have shown an overall upward trend, albeit with some volatility. In 2013, the average rent was $1,027, which decreased to $961 in 2016 before rising again. By 2022, the average rent had reached $1,083, an overall increase of 5.5% from 2013. It's worth noting that the city's population grew from 37,849 in 2013 to 42,608 in 2022, a 12.6% increase, which likely contributed to the upward pressure on both home prices and rents.
In 2023 and 2024, Cleburne's housing market continued to evolve. The average home price in 2023 was $261,743, showing a slight increase from 2022. In 2024, the average home price further rose to $264,102. These figures indicate a continuation of the upward trend in home values, albeit at a more moderate pace compared to the rapid increases seen in previous years. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying activity.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rents in Cleburne over the next five years. Average home prices are likely to continue their upward trajectory, potentially reaching around $300,000 by 2029. However, the rate of increase may slow down due to higher interest rates. Average rents are also expected to rise, possibly surpassing $1,300 by 2029, driven by population growth and potential shifts towards renting if higher interest rates make homeownership less attainable for some residents.
In summary, Cleburne's housing market has demonstrated robust growth in home values and a generally increasing trend in homeownership rates over the past decade. The city has weathered fluctuations in the rental market while maintaining an overall upward trajectory in average rents. The recent sharp increases in federal interest rates may lead to a moderation in home price growth and could potentially shift the balance between owners and renters in the coming years. As Cleburne continues to grow, its housing market is likely to remain dynamic, reflecting both local economic conditions and broader national trends.
