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Ericson, Nebraska: Rising Home Values and Ownership Rates in a Small Rural 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
Ericson, located in Nebraska, is a small community with a population that has fluctuated around 550 residents over the past decade. This rural settlement has experienced interesting shifts in homeownership rates and housing costs, reflecting broader economic trends and local dynamics. Homeownership rates in Ericson have shown a general upward trend in recent years, with some fluctuations. In 2013, the homeownership rate stood at 71%, and by 2022, it had increased to 77%. This rise in homeownership coincided with changes in average home prices. The average home price in 2021 was $187,362, rising significantly to $213,900 in 2022, representing a 14.2% increase in just one year.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, hovering between 0.09% and 2.16%. This period of low interest rates likely contributed to the overall increase in homeownership in Ericson, as mortgages became more affordable. The homeownership rate rose from 71% in 2013 to 77% in 2022, indicating that many residents took advantage of the favorable borrowing conditions to purchase homes.
Renter percentages in Ericson have generally decreased as homeownership increased. In 2013, renters occupied 29% of housing units, while by 2022, this figure had dropped to 22%. Interestingly, average rent prices have shown some volatility. The median rent peaked at $606 in 2014 and 2015, then declined to $500 in 2021 and 2022. This decrease in rent prices, coupled with the rise in homeownership, suggests that more residents may have transitioned from renting to owning during this period.
Looking at the most recent data, the average home price in Ericson reached $217,980 in 2023, a slight increase from 2022. However, in 2024, there was a minor decrease to $215,823. This slight dip coincides with a significant rise in federal interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Ericson may experience modest growth, potentially reaching around $230,000 by 2029. This projection considers the recent slowdown in price appreciation and the current higher interest rate environment. For rent prices, the forecast suggests a potential increase to approximately $550 per month over the next five years, assuming economic conditions remain relatively stable and housing demand continues to grow moderately.
In summary, Ericson has seen a notable increase in homeownership rates over the past decade, rising from 71% to 77% between 2013 and 2022. This trend has been accompanied by significant growth in average home prices, particularly from 2021 to 2022. The rental market has experienced a decline in both the percentage of renters and average rent prices. Recent data shows a stabilization in home prices, likely influenced by rising interest rates. Moving forward, modest growth is expected in both home prices and rents, reflecting the ongoing evolution of Ericson's housing market.
