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Highland Heights, Kentucky: Rising Home Values and Ownership Rates in a Resilient Housing 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
Highland Heights, Kentucky, a small city in Campbell County with a population of 5,573 as of 2022, has experienced significant changes in its housing market over the past decade. The city, covering 2.62 square miles, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
Homeownership rates in Highland Heights have shown a general upward trend, increasing from 64% in 2018 to 69% in 2022. This rise coincided with a substantial increase in average home prices, which grew from $120,093 in 2018 to $173,720 in 2022, representing a 44.7% increase over four years. Despite rising costs, more residents were able to enter the housing market during this period.
Federal interest rates have played a crucial role in shaping homeownership trends in Highland Heights. From 2010 to 2021, historically low interest rates, ranging from 0.08% to 2.16%, likely contributed to the increasing homeownership rates. A slight dip in homeownership from 66% in 2020 to 65% in 2019 may be attributed to the brief increase in interest rates to 2.16% in 2019, before dropping again in subsequent years.
Renter percentages in Highland Heights have generally decreased as homeownership rates increased, declining from 36% in 2018 to 31% in 2022. Average rent prices have shown volatility, decreasing from $926 in 2018 to $832 in 2022, with fluctuations in between. This suggests a complex rental market influenced by factors such as housing supply, local economic conditions, and possibly the impact of the COVID-19 pandemic.
In 2023 and 2024, Highland Heights experienced continued growth in average home prices, reaching $188,188 in 2023 and $192,007 in 2024, a 10.5% increase from 2022 to 2024. This upward trend occurred despite a significant rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024, suggesting strong demand in the local housing market.
Predictive models suggest that the upward trend in average home prices in Highland Heights is likely to continue over the next five years, potentially reaching the $220,000 to $240,000 range by 2029. Rent prices are predicted to stabilize and potentially see modest increases, potentially reaching an average of $900 to $950 per month by 2029, assuming steady economic growth and continued demand for rental properties in the area.
In summary, Highland Heights has experienced a notable increase in homeownership rates and average home prices over the past decade, defying the challenges posed by rising interest rates in recent years. The rental market has shown more variability, with decreasing renter percentages and fluctuating rent prices. As the city continues to evolve, the interplay between homeownership trends, housing prices, and broader economic factors will shape its residential landscape in the coming years.
