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Home Values and Ownership: Big Clifty's Decade of Change
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
Big Clifty, located in Kentucky, has experienced significant demographic and housing market changes over the past decade. This small community has seen fluctuations in its population, homeownership rates, and housing prices. The city has shown a general trend of increasing average home prices, while homeownership rates have slightly decreased over time. Average rent prices have also seen variations, reflecting the dynamic nature of the local housing market.
Analyzing the relationship between homeownership percentages and average home prices reveals interesting trends. In 2013, the homeownership rate was 81%, with an average home price of $60,214. As average home prices steadily increased, reaching $145,355 in 2022, the homeownership rate declined to 75%. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents. The most significant drop in homeownership occurred between 2016 and 2019, falling from 81% to 71%, while average home prices rose from $73,125 to $98,866 during the same period.
Federal interest rates have played a role in homeownership trends in Big Clifty. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates remained stable at around 80-81%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined to 71%. This trend aligns with the general understanding that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Renter percentages and average rent prices have shown some correlation over the years. In 2013, the renter-occupied percentage was 19%, with an average rent of $477. As the renter population increased to 29% in 2019, average rent prices rose to $575. However, this relationship hasn't been entirely consistent. For instance, in 2017, despite a slight increase in the renter population to 22%, the average rent dropped significantly to $207. The city's population growth from 1,641 in 2017 to 2,249 in 2022 may have contributed to the overall increase in rental demand and prices.
In 2023 and 2024, Big Clifty experienced a slight decline in average home prices, with values of $142,206 and $143,391 respectively. This represents a minor correction from the peak of $145,355 in 2022. 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 stabilization of home prices by potentially reducing buyer demand.
Looking ahead, predictive models suggest that average home prices in Big Clifty may continue to increase moderately over the next five years, albeit at a slower pace than observed in recent years. This projection takes into account the current high interest rates and the slight price correction seen in 2023-2024. Average rent prices are also expected to rise gradually, driven by population growth and the potential shift towards renting if homeownership becomes less affordable due to high interest rates and home prices.
In summary, Big Clifty has experienced a notable increase in average home prices over the past decade, accompanied by a gradual decline in homeownership rates. The rental market has shown variability, with recent trends pointing towards higher renter percentages and increased average rents. The interplay between federal interest rates, housing prices, and ownership patterns highlights the complex dynamics of the local real estate market. As the community continues to grow, these trends will likely shape the future of housing in Big Clifty.
