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Hammond's Housing Market: Stable Ownership Amidst Rising Home Values
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
Hammond, Louisiana, a vibrant city in the southeastern part of the state, is home to Southeastern Louisiana University and known for its rich cultural heritage. The city has experienced notable changes in its housing market over the past decade. Hammond has maintained a relatively stable homeownership rate, while average home prices and average rent prices have shown distinct trends.
Homeownership in Hammond has remained fairly consistent, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 57%, and by 2022, it had increased marginally to 60%. This stability in homeownership coincided with a steady increase in average home prices. In 2013, the average home price in Hammond was $159,375, and it rose consistently over the years, reaching $224,470 by 2022. This represents a substantial 40.8% increase in average home prices over this period.
The relationship between federal interest rates and homeownership rates in Hammond shows some interesting patterns. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained stable around 56-57%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates in Hammond actually increased slightly to 60%. This suggests that other local factors may have played a more significant role in homeownership decisions than national interest rates during this period.
Renter percentages in Hammond have shown a slight decrease, mirroring the increase in homeownership. In 2013, 43% of housing units were renter-occupied, and by 2022, this figure had decreased to 40%. Interestingly, average rent prices have fluctuated over this period. In 2013, the average rent was $870, and it peaked at $880 in 2017 before declining to $797 in 2022. This represents an 8.4% decrease in average rent prices from 2013 to 2022, despite the city's population growth from 33,539 in 2013 to 37,829 in 2022.
Looking at the most recent data, the average home price in Hammond for 2023 was $215,668, showing a slight decrease from the 2022 peak. This trend continues into 2024, with the average home price further declining to $209,838. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the city.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Hammond may continue to experience a slight downward adjustment in the short term, potentially stabilizing around the $200,000 mark. However, given the city's population growth and the overall long-term upward trend in home values, we expect prices to begin climbing again within the next 2-3 years. For average rent prices, the forecast suggests a potential increase from the 2022 low, possibly reaching the $850-$900 range within the next five years, driven by population growth and potential shifts in housing preferences.
In summary, Hammond's housing market has demonstrated resilience and growth over the past decade. The city has maintained a stable homeownership rate while experiencing significant appreciation in average home values. The recent cooling of home prices, coupled with rising interest rates, suggests a market adjustment phase. Meanwhile, the rental market has shown interesting dynamics, with decreasing renter percentages and fluctuating rent prices. As Hammond continues to grow, these housing market trends will play a crucial role in shaping the city's future development and affordability landscape.
