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Columbia, Mississippi: Rising Home Values and Ownership Rates Amidst Market Fluctuations
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
Columbia, Mississippi: A Decade of Housing Market Transformation Columbia, Mississippi, a small urban area in Marion County, has undergone significant changes in its housing market over the past decade. With a population of 10,835 in 2022 and covering 6.75 square miles, this city combines small-town charm with urban amenities. From 2013 to 2022, Columbia experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
Homeownership in Columbia has shown an overall upward trend from 2013 to 2022, with some fluctuations. The homeownership rate increased from 70% in 2013 to 74% in 2022. This rise coincided with significant changes in average home prices, which increased by 39% from $94,327 in 2013 to $131,066 in 2022. The year 2018 marked a peak in homeownership at 76%, corresponding with a moderate average home price of $103,557.
Federal interest rates have played a crucial role in shaping Columbia's homeownership trends. From 2013 to 2016, historically low interest rates of 0.1% to 0.4% coincided with an increase in homeownership from 70% to 71%. As interest rates rose more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to climb, reaching 77% in 2019, possibly due to buyers anticipating future rate increases.
Renter percentages in Columbia have generally decreased as homeownership rates increased. The percentage of renters declined from 30% in 2013 to 26% in 2022. Average rent prices fluctuated during this period, starting at $712 in 2013 and dropping to $637 in 2022. Notably, the lowest renter percentage of 23% in 2019 coincided with a moderate average rent of $665, suggesting that factors beyond rent prices influenced renting decisions.
In 2023 and 2024, Columbia experienced a slight decline in average home prices, with values of $125,898 and $124,889 respectively, representing a decrease of about 4.7% from the 2022 peak. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially contributing to this cooling in the housing market.
Looking ahead to the next five years, predictive models suggest that average home prices in Columbia may stabilize or see modest growth, assuming interest rates remain elevated. Average rent prices are projected to experience slight increases, potentially reaching around $720-$750 by 2029, driven by inflation and housing demand.
In conclusion, Columbia has experienced a notable increase in homeownership rates and average home prices over the past decade, with recent data indicating a potential stabilization in the market. The interplay between federal interest rates, local economic conditions, and housing affordability continues to shape the city's real estate landscape, presenting both opportunities and challenges for residents and potential homebuyers in the coming years.
