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Home Values and Ownership in Bella Vista: A Mountain City's 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
Bella Vista, a charming city located in Arkansas, has experienced significant growth and development over the past decade. Known for its scenic beauty and recreational opportunities, Bella Vista has become an increasingly attractive place to live. The city has maintained a consistently high rate of homeownership, with average home prices showing a steady upward trend. Meanwhile, average rent prices have fluctuated over the years, reflecting the dynamic nature of the local housing market.
The trend of homeownership in Bella Vista has remained remarkably stable, with a slight increase over time. In 2013, the homeownership rate stood at 87%, and by 2022, it had risen to 89%. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $140,430, and by 2022, it had more than doubled to $309,349. This significant appreciation in home values indicates a strong demand for housing in the area and potentially reflects the city's growing appeal to new residents.
Federal interest rates have played a role in shaping homeownership trends in Bella Vista. From 2013 to 2016, when interest rates were historically low, ranging from 0.11% to 0.40%, the homeownership rate remained steady at 87%. As interest rates began to rise in 2017, reaching 1.83% by 2018, there was a slight dip in homeownership to 86%. However, the rate quickly rebounded and continued to climb, reaching 89% by 2021 and 2022, despite interest rates fluctuating between 0.08% and 1.68% during this period. This suggests that other factors, such as the city's desirability and local economic conditions, may have a stronger influence on homeownership than interest rates alone.
The rental market in Bella Vista has shown interesting trends in relation to the city's growth. The percentage of renters decreased from 13% in 2013 to 11% in 2022. Despite this decline, average rent prices have generally increased over the years. In 2013, the average rent was $1,054, and by 2022, it had risen to $1,006, with fluctuations in between. The highest average rent was recorded in 2021 at $1,111. These trends suggest that while the rental market is smaller, it remains competitive, potentially due to the city's growing population, which increased from 27,855 in 2013 to 33,087 in 2022.
Looking at the most recent data, the average home price in Bella Vista continued its upward trajectory, reaching $325,622 in 2023 and $329,353 in 2024. This represents a 5.26% increase from 2022 to 2023 and a further 1.15% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, standing at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand for housing in Bella Vista.
Based on the historical trends and current market conditions, we can project future housing market trends for Bella Vista. Over the next five years, average home prices are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach approximately $360,000 to $380,000 by 2029. Average rent prices, which have shown more volatility, are predicted to stabilize and potentially increase moderately, possibly reaching around $1,200 to $1,300 per month by 2029.
In summary, Bella Vista has demonstrated a robust and growing housing market characterized by high homeownership rates and steadily increasing average home prices. The rental market, while smaller, has remained competitive with generally increasing average rents. The city's population growth, coupled with its desirable location, suggests that Bella Vista will continue to be an attractive destination for both homeowners and renters in the coming years.
