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Cottage Grove's Rising Home Values: A Decade of Growth in Wisconsin's Stable Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cottage Grove, located in Wisconsin, is a growing community that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices in the village, providing insights into the local real estate landscape. The homeownership rate in Cottage Grove has remained relatively stable, fluctuating between 81% and 83% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2010, the average home price was $235,770, and by 2022, it had increased to $397,147, representing a substantial 68.4% growth over 12 years.
When examining the relationship between federal interest rates and homeownership rates, we observe that despite historically low interest rates between 2010 and 2021 (ranging from 0.08% to 2.16%), the homeownership rate in Cottage Grove remained relatively constant. This suggests that other local factors may have a more significant influence on homeownership in the area than national interest rates.
The percentage of renters in Cottage Grove has fluctuated slightly, ranging from 17% to 19% between 2013 and 2022. Average rent prices have shown a notable increase during this period. In 2013, the average rent was $645, which rose to $1,493 by 2022, marking a substantial 131.5% increase. This significant rise in rent prices outpaced the growth in average home prices during the same period. The population growth from 10,446 in 2013 to 11,496 in 2022 may have contributed to the increased demand for rental properties, potentially driving up rent prices.
Looking at the most recent data, the average home price in Cottage Grove reached $422,074 in 2023 and further increased to $442,025 in 2024. This represents a 6.3% year-over-year increase from 2022 to 2023 and a 4.7% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Cottage Grove will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on historical data and current market conditions, we project that average home prices could reach approximately $500,000 by 2029. For rent prices, the upward trend is likely to persist, with average rents potentially reaching around $1,800 to $2,000 per month in the next five years.
In summary, Cottage Grove has experienced steady growth in both average home prices and average rent prices over the past decade. The stability in homeownership rates, despite rising home prices, suggests a strong local housing market. The significant increase in rent prices, outpacing home price growth, indicates a robust rental market, possibly driven by population growth and limited rental supply. As the community continues to evolve, these trends are likely to shape the future of Cottage Grove's housing landscape.
