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Hawthorne, Nevada: Rising Home Values and Ownership in a Dynamic Market
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
Hawthorne, Nevada, is a small community located in Mineral County. With a population of 2,483 in 2022 and covering an area of 1.76 square miles, this desert town has experienced significant changes in its housing market over the past decade. The ownership percentage has shown an overall increase, while average home prices have risen substantially. Average rent prices have also seen a notable upward trend.
The homeownership rate in Hawthorne has increased significantly from 2013 to 2022. In 2013, the ownership rate was 70%, which grew to 73% by 2022. This upward trend was particularly pronounced between 2015 and 2021, with ownership reaching a peak of 76% in 2021. Concurrently, average home prices have shown a remarkable increase. In 2013, the average home price was $73,830, which more than doubled to $155,517 by 2022. This represents a 110.6% increase over nine years, indicating a strong correlation between rising homeownership rates and increasing property values.
Federal interest rates have played a significant role in shaping homeownership trends in Hawthorne. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the steady increase in homeownership rates, as lower interest rates made mortgages more affordable. The ownership rate rose from 70% in 2013 to 73% in 2020, while interest rates averaged around 0.74% during this time. However, as interest rates began to rise more sharply in 2022 to 1.68%, we observed a slight dip in homeownership from 76% in 2021 to 73% in 2022.
The rental market in Hawthorne has experienced fluctuations in both renter percentages and average rent prices. The percentage of renters decreased from 30% in 2013 to 27% in 2022. However, average rent prices increased substantially during this period. In 2013, the average rent was $420, which nearly doubled to $729 by 2022, representing a 73.6% increase. Interestingly, the peak in average rent was observed in 2021 at $889, before declining slightly in 2022. This trend suggests that despite the decreasing percentage of renters, demand for rental properties remained strong, driving up prices.
In 2023 and 2024, Hawthorne's housing market showed signs of cooling. The average home price decreased from $155,517 in 2022 to $143,270 in 2023, and further declined to $123,888 in 2024. This represents a 20.3% decrease over two years. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, likely contributing to the cooling housing market by making mortgages less affordable.
Looking ahead, predictive models suggest that average home prices in Hawthorne may continue to experience some volatility over the next five years. Given the recent decline, prices might stabilize or show modest growth, potentially reaching around $135,000 by 2029. Average rent prices are projected to follow a similar pattern, possibly stabilizing around $800 per month by 2029, assuming economic conditions and population trends remain relatively stable.
In summary, Hawthorne has experienced significant changes in its housing market over the past decade. The community has seen a substantial increase in homeownership rates, accompanied by a dramatic rise in average home prices. The rental market, while decreasing in terms of the percentage of renters, has also seen considerable growth in average rent prices. Recent data from 2023 and 2024 indicate a cooling trend in the housing market, likely influenced by rising interest rates. These trends highlight the dynamic nature of Hawthorne's housing market and its sensitivity to broader economic factors.
