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Hamburg, Arkansas: Resilient Homeownership Amid Fluctuating Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hamburg, a small city in Arkansas, has experienced fluctuations in its housing market over the past decade. The city has maintained a relatively high homeownership rate, typically above 70%, while average home prices and rent have shown varying trends. Hamburg's unique character as a rural community influences its housing dynamics.
The homeownership rate in Hamburg has remained relatively stable, with minor fluctuations. In 2013, the rate stood at 78%, decreasing slightly to 73% by 2020, and then rising to 75% in 2022. This trend has occurred alongside a general increase in average home prices. In 2013, the average home price was $73,416, which rose steadily to reach $103,540 by 2022, representing a 41% increase over this period. This suggests that despite rising home prices, Hamburg residents have maintained a strong preference for homeownership.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1-0.4%. During this period, homeownership rates in Hamburg remained relatively stable, between 73-78%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed slight fluctuations but remained resilient, suggesting that local factors may have a stronger influence on homeownership in Hamburg than national interest rate trends.
Renter percentages in Hamburg have shown a corresponding inverse relationship to homeownership rates, ranging from 22% in 2013 to 25% in 2022. Average rent prices have demonstrated volatility over the years. In 2013, the average rent was $460, which decreased to $417 in 2015, then spiked to $632 in 2016, before settling at $713 in 2022. This represents a 55% increase in average rent from 2013 to 2022. The fluctuations in rent prices don't appear to have a strong correlation with the relatively stable renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may be influencing renting behavior in Hamburg.
In 2023, the average home price in Hamburg reached $103,260, showing a slight decrease from the previous year. This trend continued into 2024, with average home prices further declining to $100,068. Interestingly, this occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests that local market factors in Hamburg may be exerting a stronger influence on home prices than national interest rate trends.
Looking ahead, based on the historical data and recent trends, we can project potential scenarios for Hamburg's housing market over the next five years. Average home prices may continue to experience moderate growth, potentially reaching around $110,000 to $115,000 by 2029. However, this growth rate could slow compared to the rapid increases seen in the early 2020s. Average rent prices might continue their upward trajectory, potentially reaching $800 to $850 per month by 2029, assuming the current trend persists.
In summary, Hamburg's housing market is characterized by a strong preference for homeownership, which has remained resilient despite fluctuations in home prices and interest rates. The rental market, while smaller, has seen more volatile price changes. The recent cooling of home prices, despite rising interest rates, highlights the unique factors influencing Hamburg's housing market. As the city moves forward, maintaining affordable housing options for both owners and renters will likely be a key consideration for local policymakers and residents alike.
