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Erie, Kansas: Rising Home Values Amidst Fluctuating Ownership Rates
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
Erie, a small city in Kansas, has experienced notable changes in its housing market over the past decade. With a population of 1,845 residents in 2022, the city has seen significant fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Erie has shown a remarkable trend over the years. In 2013, 81% of housing units were owner-occupied. This percentage declined to 68% by 2017, indicating a shift towards renting. However, the trend reversed in recent years, with homeownership rising to 77% in 2022. This increase coincided with a substantial rise in average home prices. In 2016, the average home price in Erie was $69,001. By 2022, it had climbed to $118,699, representing a 72% increase over six years.
The relationship between federal interest rates and homeownership rates in Erie is complex. From 2013 to 2017, when interest rates were historically low (ranging from 0.11% to 1%), homeownership actually decreased. This suggests that other local factors were influencing the housing market more strongly than national interest rates during this period. However, as interest rates began to rise more significantly from 2018 onwards, homeownership in Erie also increased, contrary to the typical trend where higher interest rates often discourage home buying.
Renter percentages in Erie have inversely mirrored the homeownership trends. The proportion of renters increased from 19% in 2013 to a peak of 32% in 2017, before declining to 23% in 2022. Average rent prices have shown volatility over this period. In 2013, the median rent was $350, which rose sharply to $674 by 2017. However, rent prices then decreased, settling at $514 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may have played a more significant role in determining rental rates.
In 2023, the average home price in Erie reached $125,117, with the federal interest rate at 5.02%. Moving into 2024, the average home price further increased to $129,943, while the federal interest rate rose slightly to 5.33%. These figures indicate a continuing upward trend in home values despite higher interest rates, which typically would be expected to slow down price growth.
Looking ahead, predictive models suggest that average home prices in Erie may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Rent prices are expected to stabilize or increase moderately, influenced by the balance between homeownership rates and rental demand.
In summary, Erie has experienced a resurgence in homeownership rates in recent years, coupled with significant increases in average home prices. The rental market has shown more volatility, both in terms of renter percentages and rent prices. The city's housing market has demonstrated resilience, with home values continuing to appreciate even in the face of rising interest rates. These trends suggest a dynamic and evolving housing market in Erie, reflecting both local conditions and broader economic factors.
