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Cove, Arkansas: Home Values and Ownership Trends in a Small 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
Cove, Arkansas, is a small community that has experienced significant demographic shifts over the past decade. The city has seen notable changes in its homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Cove witnessed a fluctuating trend in homeownership rates. In 2013, the homeownership rate stood at 82%, but it decreased to 67% by 2018. However, there was a slight recovery, with the rate rising to 72% by 2022. During this same period, average home prices in Cove showed a steady upward trend. In 2013, the average home price was $83,197, which increased to $155,374 by 2022, representing an impressive 86.8% growth over nine years.
The relationship between federal interest rates and homeownership rates in Cove appears to follow typical patterns. For instance, when interest rates were relatively low between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained above 70%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, homeownership rates dipped to their lowest point of 64% in 2019. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Regarding rental trends, the percentage of renters in Cove increased from 17% in 2013 to a peak of 36% in 2019, before settling at 28% in 2022. Average rent prices also showed an overall upward trend, rising from $448 in 2013 to $555 in 2022, a 23.9% increase. It's worth noting that the peak in average rent was $600 in 2017, coinciding with a period of population decline in the city from 1,292 in 2013 to 938 in 2022.
In 2023 and 2024, Cove's housing market showed signs of stabilization. The average home price in 2023 was $151,640, a slight decrease from 2022, but it rebounded to $152,654 in 2024. This modest growth occurred despite relatively high federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting resilience in the local housing market.
Looking ahead, predictive models suggest that average home prices in Cove may continue to rise moderately over the next five years, potentially reaching around $170,000 by 2029. Average rent prices are also expected to increase, possibly approaching $600 by 2029. These projections assume stable economic conditions and gradual population growth.
In summary, Cove has experienced a complex interplay of homeownership rates, average home prices, and rental market dynamics. The city has shown resilience in its housing market, with home prices generally trending upward despite fluctuations in homeownership rates. The rental market has also seen growth, both in terms of the percentage of renters and average rent prices. These trends reflect the broader economic conditions and local market forces shaping Cove's housing landscape.
