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Franklin, Nebraska: Rising Home Values and Steady Ownership in an Agricultural 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
Franklin, Nebraska, is a small community with a population of 740 as of 2022. This charming city, spanning just 0.99 square miles, has experienced notable shifts in homeownership rates and housing prices over the past decade. The overall trend shows a slight increase in homeownership, coupled with rising average home prices and fluctuating average rent prices.
The homeownership rate in Franklin has seen a modest increase from 76% in 2019 to 80% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2016, the average home price was $62,912, which steadily increased to $100,777 by 2022, representing a substantial 60% growth over six years. This correlation suggests that despite rising home prices, residents of Franklin have maintained a strong inclination towards homeownership.
The federal interest rates have played a role in shaping homeownership trends in Franklin. From 2016 to 2019, as interest rates rose from 0.4% to 2.16%, homeownership rates slightly declined from 83% to 76%. However, when interest rates dropped dramatically to 0.38% in 2020 and remained low through 2021, homeownership rates began to recover, reaching 77% in 2021 and 80% in 2022. This pattern aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in Franklin has fluctuated over the years, with the percentage of renters decreasing from 24% in 2019 to 20% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent peaked at $617 in 2017, then decreased to $425 in 2019 and 2020, before rising again to $504 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests that some renters may have transitioned to homeownership, particularly as home prices became more attractive relative to rental costs.
In 2023 and 2024, Franklin continued to see growth in average home prices. The average home price reached $103,511 in 2023 and further increased to $104,921 in 2024. This represents a steady appreciation of housing values in the city. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in Franklin will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach approximately $115,000 to $120,000 by 2029. Average rent prices, which have shown volatility, may stabilize and gradually increase, potentially reaching around $550 to $600 per month by 2029, assuming economic conditions remain stable and housing demand continues to grow.
In summary, Franklin has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The interplay between federal interest rates, homeownership, and housing prices has been evident, with lower rates generally supporting homeownership. The rental market has shown some volatility, but overall, the city appears to be transitioning towards a stronger owner-occupied housing landscape. As the city moves forward, it will be crucial to monitor how these trends evolve, particularly in light of the recent increases in interest rates and their potential impact on the housing market.
