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Durham, Oregon: Rising Home Values and Shifting Ownership in a Charming Suburban 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
Durham, Oregon, is a small community located in Washington County. Known for its proximity to Portland and its charming suburban atmosphere, Durham has experienced notable shifts in homeownership, average home prices, and rental market dynamics over the past decade. The city has seen a general trend of decreasing homeownership rates, while average home prices have shown significant growth.
From 2013 to 2022, Durham witnessed a decline in homeownership rates, dropping from 83% to 74%. During this same period, average home prices experienced substantial growth, increasing from $374,455 in 2013 to $763,886 in 2022, representing a remarkable 104% increase. This inverse relationship suggests that as home prices rose, homeownership became less attainable for some residents. The year 2015 marked the peak of homeownership at 86%, coinciding with an average home price of $442,227. However, as prices continued to climb, homeownership rates began to decline.
Federal interest rates have played a significant role in shaping homeownership trends in Durham. From 2013 to 2016, interest rates remained low, hovering between 0.09% and 0.40%, which likely contributed to the relatively high homeownership rates during this period. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a corresponding decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in Durham has shown an interesting pattern. As homeownership rates declined, the percentage of renters increased from 17% in 2013 to 26% in 2022. However, average rent prices have not followed a consistent upward trend. In 2013, the average rent was $1,631, peaking at $1,800 in 2014. Since then, rent prices have fluctuated, reaching $1,357 in 2022. This suggests that while more residents are renting, the rental market has remained relatively competitive, possibly due to increased housing supply or other local economic factors.
In 2023, the average home price in Durham reached $758,224, showing a slight decrease from the previous year. This trend continued into 2024, with average home prices rising modestly to $771,197. Interestingly, federal interest rates have increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, predictive models suggest that average home prices in Durham may continue to rise over the next five years, albeit at a more moderate pace compared to the rapid growth seen in the past decade. Average rent prices are expected to stabilize or show slight increases, reflecting the balance between housing supply and demand in the area.
In summary, Durham has experienced a notable shift in its housing market dynamics over the past decade. The decline in homeownership rates, coupled with significant increases in average home prices, points to growing affordability challenges for potential homebuyers. The rental market has expanded to accommodate this shift, with a larger proportion of residents opting to rent. As the city moves forward, balancing housing affordability with market growth will likely be a key consideration for local policymakers and residents alike.
