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Home Values and Ownership in Franklin, Idaho: A Decade of Market Dynamics
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
Franklin, Idaho, a small but growing community in the southeastern part of the state, has experienced significant changes in its housing market over the past decade. With a population of 2,357 in 2022, the city has seen notable shifts in homeownership rates and housing prices. The trends in ownership percentages, average home prices, and average rent prices reveal an evolving real estate landscape in Franklin.
The homeownership rate in Franklin has shown significant fluctuations between 2013 and 2022. In 2013, the ownership rate stood at 76%. It reached its peak in 2018 at 88%, before declining to 74% by 2022. This trend correlates interestingly with the average home prices in the area. From 2017 to 2022, average home prices in Franklin increased substantially, rising from $219,352 to $422,117, representing a 92.4% increase over five years.
The relationship between federal interest rates and homeownership rates in Franklin presents an intriguing pattern. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), the homeownership rate in Franklin actually declined from its peak of 88% in 2018 to 74% in 2022. This suggests that factors beyond interest rates, such as rising home prices or local economic conditions, may have played a more significant role in homeownership trends in the city.
Renter percentages in Franklin have shown an inverse relationship to homeownership rates, as expected. The percentage of renters decreased from 24% in 2013 to a low of 12% in 2018, before rising again to 26% in 2022. Interestingly, average rent prices have not followed a consistent trend with renter percentages. Average rent peaked at $933 in 2014, then declined to $625 in 2019, before rising slightly to $674 in 2022. This suggests that factors other than supply and demand, such as local economic conditions or housing policies, may be influencing rent prices in Franklin.
In 2023 and 2024, Franklin experienced a slight decline in average home prices, with values of $392,194 and $392,071 respectively. This represents a 7.1% decrease from the 2022 peak. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially contributing to the cooling of the housing market.
Looking ahead, predictive models suggest that average home prices in Franklin may stabilize or experience moderate growth over the next five years, assuming economic conditions remain relatively stable. Rent prices are projected to increase gradually, potentially reaching around $750-$800 by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Franklin has experienced significant changes in its housing market over the past decade. The city saw a peak in homeownership rates in 2018, followed by a decline as average home prices rose substantially. The rental market has shown resilience, with renter percentages increasing in recent years despite fluctuations in average rent prices. As the city continues to grow and adapt to changing economic conditions, these trends will likely continue to evolve, shaping the future of Franklin's real estate landscape.
