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Crestview, Kentucky: A Decade of Rising Home Values and High Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Crestview, a small city in Kentucky, has experienced notable fluctuations in its real estate market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the city's housing dynamics. Homeownership in Crestview has remained relatively high, with rates generally above 80% throughout the observed period. The average home prices have shown a consistent upward trend, particularly in recent years. Meanwhile, average rent prices have exhibited more volatility, with significant fluctuations over time.
The homeownership rate in Crestview peaked at 94% in 2013, coinciding with a period of low federal interest rates. As interest rates remained low, homeownership rates stayed high, ranging between 89% and 91% from 2014 to 2018. During this time, average home prices steadily increased from $121,496 in 2014 to $142,082 in 2018, representing a 17% increase over four years.
The relationship between federal interest rates and homeownership rates in Crestview aligns with well-established trends. As interest rates remained at historic lows from 2013 to 2018, hovering between 0.09% and 1.83%, homeownership rates remained high. This correlation supports the notion that lower interest rates generally encourage homeownership by making mortgages more affordable.
Renter percentages in Crestview have been relatively low, generally ranging from 6% to 18% of the population. Average rent prices have shown significant variability. In 2013, the average rent was $940, which dropped to $686 in 2014. There was a sharp increase to $1,250 in 2017 and $1,266 in 2018, followed by a notable decrease to $781 in 2019. These fluctuations in rent prices don't appear to have a strong correlation with the renter percentages, suggesting other factors may be influencing rental market dynamics.
In 2023, the average home price in Crestview reached $217,132, a significant increase from previous years. This upward trend continued into 2024, with average home prices rising to $225,029. Concurrently, federal interest rates increased to 5.02% in 2023 and 5.33% in 2024, marking a substantial rise from the low rates observed in the previous decade.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Crestview will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may stabilize or show moderate increases, influenced by factors such as housing demand and economic conditions in the area.
In summary, Crestview's housing market has been characterized by high homeownership rates, steadily increasing average home prices, and fluctuating average rent prices. The impact of federal interest rates on homeownership has been evident, with low rates correlating with high ownership percentages. As the city moves forward, it will be crucial to monitor how the recent increase in interest rates affects homeownership trends and housing affordability in this Kentucky community.
