Fredericksburg, Iowa, a small community with a rich history, has experienced notable changes in its real estate market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, with an overall trend showing a slight decrease in homeownership and a corresponding increase in rental occupancy. Both average home prices and average rent prices have undergone significant changes during this period.

The homeownership rate in Fredericksburg has gradually declined from 85% in 2013 to 77% in 2022. This trend coincides with an increase in average home prices, which reached $170,601 by 2022. The relationship between federal interest rates and homeownership rates in Fredericksburg follows a well-established pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates remained relatively stable, fluctuating between 76% and 85%. However, as interest rates began to rise significantly in 2022 to 1.68%, a slight decrease in homeownership to 77% was observed.

The renter percentage in Fredericksburg has shown an overall increase from 15% in 2013 to 23% in 2022. This trend corresponds with fluctuations in average rent prices, which increased from $1,075 in 2013 to a peak of $1,228 in 2019, before declining to $743 in 2022. The population of Fredericksburg has also fluctuated during this period, reaching a peak of 1,955 residents in 2017 before declining to 1,575 in 2022, which may have influenced rental market dynamics.