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Home Values and Ownership: Lowell, Arkansas - A Thriving City Near Corporate Giants
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
Lowell, Arkansas, a rapidly growing city in Benton County, has experienced significant changes in its housing market over the past decade. With a population increase from 12,299 in 2013 to 17,289 in 2022, and a land area of 9.61 square miles, Lowell has become an attractive location for both homeowners and renters. This analysis explores the trends in homeownership, average home prices, and average rent prices in Lowell.
The homeownership rate in Lowell has remained relatively stable over the years, with slight fluctuations. In 2013, the homeownership rate was 65%, reaching its peak of 69% in 2017, and slightly decreasing to 64% by 2022. During this period, average home prices in Lowell have shown a consistent upward trend. In 2013, the average home price was $131,971, rising steadily to reach $292,762 in 2022, representing a remarkable 122% increase over nine years.
The relationship between federal interest rates and homeownership rates in Lowell appears to be complex. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), the homeownership rate in Lowell remained relatively stable, fluctuating between 64% and 69%. This suggests that other factors, such as local economic conditions and housing supply, may have played a more significant role in determining homeownership rates in Lowell during this period.
Renter percentages in Lowell have mirrored the homeownership trends, with slight variations. The percentage of renters decreased from 35% in 2013 to 31% in 2017, before increasing to 36% in 2022. Average rent prices have generally shown an upward trend, albeit with some fluctuations. In 2013, the average rent was $1,031, and it increased to $1,227 in 2021, representing a 19% rise. However, there was a slight decrease to $1,089 in 2022. The increase in rent prices, coupled with the growing population, suggests a strong demand for rental properties in Lowell.
Looking at the most recent data, the average home price in Lowell continued its upward trajectory, reaching $310,773 in 2023 and $324,347 in 2024. This represents a 6.2% increase from 2022 to 2023 and a further 4.4% increase from 2023 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may potentially impact homebuying affordability and future homeownership rates in Lowell.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Lowell will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $400,000 to $450,000, assuming a conservative annual growth rate of 4-6%. Average rent prices are also expected to increase, potentially reaching $1,400 to $1,600 per month by 2029, based on historical trends and the city's continued population growth.
In summary, Lowell, Arkansas has experienced significant growth in both population and housing prices over the past decade. The city has maintained a relatively stable homeownership rate despite rising home prices, indicating a strong local economy and demand for housing. The rental market has also seen growth, with increasing rent prices and a slight uptick in the percentage of renters in recent years. As Lowell continues to develop, it will be crucial to monitor how these housing trends evolve, particularly in light of rising interest rates and the city's ongoing population growth.
