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Evansville, Minnesota: Rising Home Values and Shifting Ownership in a Small City
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
Evansville, Minnesota, is a small city with a population of 872 as of 2022. This community has experienced notable shifts in homeownership rates and housing prices over the past decade. The city has seen a general trend of decreasing homeownership, coupled with rising average home prices and fluctuating average rent prices.
The homeownership rate in Evansville has shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate was 75%, which increased to 82% in 2015. However, it then began a downward trend, reaching 73% by 2022. During this same period, average home prices in Evansville have consistently increased. In 2013, the average home price was $132,144, and by 2022, it had risen to $243,790, representing an 84.5% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in Evansville. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates in Evansville remained high, peaking at 82% in 2015. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Evansville started to decline, falling to 73% by 2022.
The renter percentage in Evansville has shown an inverse relationship to homeownership rates, increasing from 25% in 2013 to 27% in 2022. Average rent prices have also experienced fluctuations during this period. In 2013, the average rent was $541, which increased to $721 in 2018, representing a 33.3% increase. However, rent prices then decreased to $667 by 2022, a 7.5% drop from the 2018 peak. These fluctuations in rent prices may be influenced by changes in the city's population, which has varied between 814 and 878 residents from 2013 to 2022.
In 2023, the average home price in Evansville reached $253,362, and in 2024, it further increased to $255,846. This represents a 5% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in Evansville.
Looking ahead, based on the historical data and current trends, it is projected that average home prices in Evansville will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could potentially reach around $280,000 by 2029. Average rent prices are also expected to increase, possibly reaching $750-$800 per month by 2029, assuming steady population growth and continued demand for rental properties.
In summary, Evansville has experienced a gradual shift towards more renters and fewer homeowners over the past decade, coinciding with significant increases in average home prices. The relationship between federal interest rates and homeownership rates is evident, with lower rates generally corresponding to higher homeownership. Despite fluctuations, both average home prices and rent prices have shown an overall upward trend, which is expected to continue in the coming years, albeit potentially at a more moderate pace due to rising interest rates.
