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Home Values and Ownership in Jackson, Kentucky: A Decade of Changes
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
Jackson, located in Kentucky, is a vibrant community with a population of 8,175 as of 2022. The city has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
Homeownership in Jackson has shown a slight decline from 2013 to 2022. In 2013, the homeownership rate stood at 75%, but by 2022, it had decreased to 72%. This trend coincided with changes in average home prices. The average home price in Jackson rose from $56,440 in 2016 to $80,759 in 2022, representing a significant increase of 43.1% over six years. This upward trend in home prices may have contributed to the slight decrease in homeownership rates, as higher prices potentially made homeownership less accessible for some residents.
The relationship between federal interest rates and homeownership rates in Jackson follows a generally expected pattern. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 73-75%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a corresponding slight decline in homeownership rates to 72%. This trend aligns with the principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Jackson have shown a marginal increase from 25% in 2013 to 28% in 2022. This trend correlates with fluctuations in average rent prices. The average rent in Jackson increased from $486 in 2013 to a peak of $569 in 2016, before declining to $469 in 2022. The overall trend shows a slight decrease in average rent prices over the decade, which may have made renting more attractive for some residents, contributing to the small increase in the renter population.
In 2023 and 2024, Jackson experienced further changes in the housing market. The average home price decreased slightly to $77,807 in 2023 but then rebounded to $82,250 in 2024, showing continued growth in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in Jackson may continue to rise moderately over the next five years, potentially reaching around $90,000 by 2029. Average rent prices are expected to stabilize or increase slightly, possibly reaching $500 per month by 2029. These projections are based on current trends and economic indicators but may be subject to change based on various factors affecting the local and national economy.
In summary, Jackson has experienced a slight shift towards renting over the past decade, with a small decrease in homeownership rates. Average home prices have shown significant growth, particularly from 2016 to 2022, while rent prices have fluctuated but remain relatively stable. The recent increase in interest rates may continue to influence homeownership trends in the coming years. As the city evolves, these housing market dynamics will play a crucial role in shaping the community's residential landscape.
