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Decatur, Arkansas: Home Values Soar in Ozark-Adjacent 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
Decatur, Arkansas, is a small yet dynamic community located in Benton County. With a population of 4,016 in 2022, this city has experienced fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a gradual increase in homeownership, from 67% in 2014 to 75% in 2022, while average home prices have risen significantly, and average rent prices have shown some volatility.
The relationship between homeownership percentage and average home prices in Decatur reveals an interesting pattern. As homeownership rates increased from 67% in 2014 to 75% in 2022, average home prices also saw a substantial rise. In 2014, the average home price was $88,133, which steadily climbed to $221,538 by 2022, representing a 151% increase over eight years. This trend suggests that despite rising home prices, more residents were able to enter the housing market, possibly due to factors such as income growth or favorable lending conditions.
Federal interest rates have played a significant role in homeownership trends in Decatur. The period from 2014 to 2021 saw historically low interest rates, ranging from 0.09% to 1.68%. This low-interest environment likely contributed to the increase in homeownership rates, as it made mortgages more affordable for potential buyers. For instance, the homeownership rate rose from 67% in 2014 to 76% in 2021, coinciding with interest rates remaining below 2% for most of this period.
The rental market in Decatur has shown some interesting trends. As homeownership rates increased, the percentage of renters naturally decreased from 33% in 2014 to 25% in 2022. However, average rent prices have been volatile during this period. In 2014, the average rent was $778, which peaked at $813 in 2015 before declining to $601 in 2022. This decrease in average rent prices, despite a shrinking rental market share, could be attributed to factors such as new rental property developments or changes in local economic conditions.
Looking at the most recent data, the average home price in Decatur continued its upward trajectory, reaching $238,135 in 2023 and further increasing to $245,287 in 2024. This represents a 10.8% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices have continued to appreciate, suggesting strong demand in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Decatur will continue to rise, albeit at a more moderate pace. Based on historical data and current market conditions, we project average home prices could reach approximately $280,000 to $300,000 by 2029. For average rent prices, the forecast suggests a potential stabilization and gradual increase, possibly reaching $700 to $750 per month by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, Decatur has experienced a notable increase in homeownership rates and average home prices over the past decade, despite fluctuations in the rental market. The resilience of the housing market, even in the face of rising interest rates, indicates a strong local economy and sustained demand for housing in the area. As the city continues to grow and evolve, these trends will likely shape its residential landscape in the coming years.
