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Coon Rapids Housing Trends: Home Values Rise as Ownership Dips in Minnesota's Park-Rich Suburb
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Coon Rapids, a vibrant city in Minnesota, has experienced notable shifts in its housing market over the past decade. Located just north of Minneapolis, this suburban community has seen evolving trends in homeownership rates, average home prices, and average rent prices, reflecting broader economic changes and local market dynamics.
The homeownership rate in Coon Rapids has shown a slight decline over the years, moving from 77% in 2013 to 75% in 2022. This subtle shift coincides with a significant increase in average home prices. In 2013, the average home price in Coon Rapids was $152,478, which steadily rose to $318,300 by 2022, representing a substantial 108.8% increase over this period. The most dramatic year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $257,452 to $294,204, a 14.3% rise in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in Coon Rapids. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 76-77%. However, as interest rates began to climb from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, a slight dip in homeownership to 74% was observed in 2019. Interestingly, despite the interest rate drop to 0.38% in 2020 and 0.08% in 2021, homeownership rates stabilized at 75%, suggesting other factors were also influencing the housing market.
The rental market in Coon Rapids has seen its own set of changes. The percentage of renters increased from 22% in 2013 to 25% in 2022. This rise in renter-occupied units correlates with an increase in average rent prices. In 2013, the average rent was $1,217, which grew to $1,383 by 2022, an increase of 13.6%. The most significant jump in rent prices occurred between 2020 and 2021, rising from $1,410 to $1,496, a 6.1% increase in a single year. This trend aligns with the city's population growth from 61,770 in 2013 to 63,296 in 2022, suggesting increased demand for rental properties.
In 2023 and 2024, the housing market in Coon Rapids continued to evolve. The average home price in 2023 was $318,476, showing a marginal increase from 2022. In 2024, the average home price rose to $323,447, indicating a continued upward trend, albeit at a slower pace. Notably, federal interest rates climbed significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in Coon Rapids may continue to rise over the next five years, but at a more moderate pace compared to the rapid increases seen in the early 2020s. Average rent prices are also expected to follow an upward trajectory, driven by population growth and the increasing demand for rental properties. However, the rate of increase may be tempered by economic factors and the potential for new housing developments in the area.
In summary, Coon Rapids has experienced a gradual shift towards a slightly higher proportion of renters, accompanied by substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, population growth, and local economic conditions has shaped these trends, resulting in a dynamic housing market that continues to evolve. As the city moves forward, balancing affordability with growth will likely be a key consideration for both policymakers and residents alike.
