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Home Values and Ownership in Lava Hot Springs: A Decade of Growth in Idaho's Hot Springs City
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
Lava Hot Springs, a small city in Idaho known for its natural hot springs and outdoor recreation, has experienced notable fluctuations in homeownership rates and property values over the past decade. The city has seen a general trend of increasing average home prices, while homeownership rates have shown some variability. Average rent prices have also fluctuated, reflecting the dynamic nature of the local housing market.
The relationship between homeownership percentages and average home prices in Lava Hot Springs reveals an interesting pattern. In 2013, when the homeownership rate was 80%, the average home price was $175,019. As homeownership increased to 91% in 2018, average home prices rose to $217,265, suggesting a positive correlation. However, this trend didn't hold consistently. By 2022, despite a slight decrease in homeownership to 85%, average home prices had surged to $433,449, indicating that other factors were influencing property values.
Federal interest rates have played a role in shaping homeownership trends in Lava Hot Springs. When interest rates were at historic lows between 2013 and 2016, hovering around 0.1%, homeownership rates in the city remained relatively stable, ranging from 78% to 83%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates initially increased to 91% in 2018 before settling at 85% in 2022. This suggests that while low interest rates generally support homeownership, local market factors also significantly influence buying decisions.
Renter percentages and average rent prices in Lava Hot Springs have shown some correlation, but with notable exceptions. In 2013, when 20% of residents were renters, the average rent was $778. As the renter population decreased to 9% in 2018, average rent dropped to $615. However, by 2022, with renters making up 15% of the population, average rent had increased to $783. This increase in rent coincided with a significant population growth from 1,134 in 2018 to 1,214 in 2022, suggesting that increased demand may have driven up rental prices despite a relatively stable renter percentage.
Looking at the most recent data, average home prices in Lava Hot Springs slightly decreased from $433,449 in 2022 to $431,749 in 2023, before rebounding to $438,837 in 2024. This modest growth occurred despite a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This resilience in home prices suggests strong underlying demand in the local real estate market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Lava Hot Springs will continue to rise, albeit at a more moderate pace. The high interest rate environment is likely to temper rapid price growth. Average rent prices are expected to increase steadily, driven by population growth and potential shifts towards renting if high interest rates persist, making homeownership less affordable for some residents.
In summary, Lava Hot Springs has experienced significant growth in average home prices over the past decade, with values more than doubling from 2013 to 2022. Homeownership rates have fluctuated but remained generally high, peaking at 91% in 2018. The rental market has shown resilience, with average rents recovering from a dip in 2018 to reach new highs by 2022. The interplay between federal interest rates, local population changes, and broader economic factors continues to shape the city's housing market dynamics.
