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Council, Idaho: Rising Home Values and Shifting Ownership in a Growing Western Community
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
Council, Idaho, is a small but growing community nestled in the western part of the state. Over the past decade, this city has experienced fluctuations in its homeownership rates and housing market dynamics. The overall trend shows a slight decrease in owner-occupied housing, while average home prices and rent have generally increased, albeit with some volatility.
From 2013 to 2022, Council saw a gradual decline in homeownership rates. In 2013, 86% of housing units were owner-occupied, but this figure dropped to 78% by 2022. During this same period, average home prices in the city saw a substantial increase. In 2013, the average home price was $112,900, and by 2022, it had risen dramatically to $393,521, representing a 248% increase over nine years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made it more challenging for some residents to enter the housing market as owners.
Federal interest rates have played a role in shaping homeownership trends in Council. From 2013 to 2016, when interest rates were at historic lows (between 0.11% and 0.40%), homeownership rates remained relatively stable at around 79-82%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a slight downward trend, ending at 78% in 2022. This pattern aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in Council has shown interesting trends as well. The percentage of renter-occupied housing units increased from 14% in 2013 to 22% in 2022. Concurrently, average rent prices experienced significant fluctuations. In 2013, the average rent was $162, which increased to $769 by 2022, representing a 375% increase. However, this growth was not linear, with notable drops in certain years, such as 2019 when the average rent fell to $201. These fluctuations in rent prices, coupled with the increasing renter population, suggest a dynamic rental market responding to various economic factors and potentially changing demographics in the city.
In 2023 and 2024, Council's housing market showed signs of stabilization after years of rapid growth. The average home price in 2023 was $374,315, a slight decrease from the 2022 peak. In 2024, prices saw a modest increase to $378,830. Interestingly, federal interest rates continued to rise during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slowing of home price appreciation.
Looking ahead, predictive models suggest that average home prices in Council may continue to increase over the next five years, but at a more moderate pace compared to the rapid growth seen in the early 2020s. Average rent prices are also expected to rise, potentially driven by the increasing renter population and overall housing demand. However, the rate of increase for both home prices and rents may be tempered by higher interest rates and potential economic factors affecting the broader housing market.
In summary, Council has experienced a gradual shift towards a higher proportion of renters, accompanied by substantial increases in both home prices and rents over the past decade. The interplay between federal interest rates, homeownership rates, and housing costs has been evident, with recent years showing signs of market stabilization. As the city continues to grow and evolve, these housing market dynamics will likely play a crucial role in shaping its future development and community composition.
