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Hayward, Minnesota: Rising Home Values and Strong Ownership in a Small City
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
Hayward, Minnesota, a small city in Freeborn County, has experienced notable changes in its housing market over the past decade. The city has seen fluctuations in population and homeownership rates, with a general trend towards increased owner occupancy. Average home prices have shown a steady upward trajectory, while average rent prices have demonstrated more variability.
The percentage of owner-occupied housing in Hayward has increased significantly from 2013 to 2022. In 2013, the homeownership rate was 87%, which rose to 92% by 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price in Hayward was $91,752, which steadily increased to $176,540 by 2022, representing a 92.4% increase over this period.
The trend in homeownership rates appears to have been influenced by federal interest rates, but not in the expected manner. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates in Hayward remained relatively stable at around 86-87%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Hayward actually increased to 92%. This suggests that other local factors may have played a more significant role in driving homeownership than national interest rates.
The percentage of renters in Hayward has decreased from 13% in 2013 to 8% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $561, which decreased to $266 by 2018, before rising again to $344 in 2022. This fluctuation in rent prices does not seem to correlate directly with the decreasing renter population, suggesting that other factors such as local economic conditions or housing supply may be influencing rent prices.
In 2023, the average home price in Hayward reached $182,968, with interest rates climbing to 5.02%. As of 2024, the average home price has further increased to $185,944, while interest rates have risen slightly to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Hayward are likely to continue their upward trajectory over the next five years, possibly reaching around $210,000 by 2029. Average rent prices, given their historical volatility, are more challenging to predict. However, if the current trend continues, we might see average rents stabilize or slightly increase, potentially reaching around $380-$400 by 2029.
In summary, Hayward has experienced a significant increase in homeownership rates and average home prices over the past decade, despite rising interest rates. The rental market has shrunk in terms of occupancy, with fluctuating rent prices. The city's housing market appears to be robust, with continued growth in home values expected in the coming years.
