Loading Content...
Home Values and Ownership Rise in Hutchinson, Kansas: The Salt City's Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hutchinson, Kansas, affectionately known as "Hutch," is a charming city located in the heart of the Sunflower State. This vibrant community has experienced notable shifts in its housing market over the past decade. From 2013 to 2022, Hutchinson saw a gradual increase in homeownership rates, rising from 64% to 66%, while average home prices climbed steadily from $75,019 to $124,203. Meanwhile, average rent prices fluctuated, starting at $757 in 2013 and reaching $782 by 2022.
The relationship between homeownership rates and average home prices in Hutchinson reveals an interesting trend. As average home prices rose from $75,019 in 2013 to $124,203 in 2022, a substantial increase of 65.6%, homeownership rates also saw a slight uptick from 64% to 66%. This suggests that despite rising home prices, Hutchinson residents have maintained a strong interest in homeownership, possibly due to the city's relatively affordable housing market compared to national averages.
Federal interest rates have played a significant role in shaping homeownership trends in Hutchinson. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in Hutchinson remained stable at around 63-64%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), Hutchinson saw an increase in homeownership rates, reaching 67% by 2019. This counter-intuitive trend might be attributed to residents rushing to purchase homes before rates climbed further, coupled with the city's relatively affordable housing market.
Renter percentages and average rent prices in Hutchinson have shown some fluctuations over the years. The renter-occupied percentage peaked at 38% in 2016 when the average rent was $797. Interestingly, as the population declined from 46,115 in 2016 to 43,571 in 2022, the renter percentage decreased to 34%, while average rent increased slightly to $782. This suggests that despite a shrinking population, demand for rental properties remained relatively stable, keeping rent prices from declining significantly.
In 2023 and 2024, Hutchinson's housing market continued to evolve. The average home price in 2023 reached $131,472, a 5.9% increase from 2022. In 2024, it further rose to $135,480, marking a 3.0% annual increase. These price increases coincided with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher rates, the housing market in Hutchinson has shown resilience, with prices continuing to appreciate, albeit at a slower pace than in previous years.
Looking ahead, predictive models suggest that Hutchinson's housing market will continue to grow moderately. Over the next five years, average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $160,000 by 2029. Average rent prices are expected to follow a similar trend, with estimated annual increases of 2-3%, potentially reaching around $900 per month by 2029.
In summary, Hutchinson's housing market has demonstrated remarkable stability and growth over the past decade. The city has maintained a strong homeownership rate despite rising home prices, likely due to its relatively affordable market. The rental market has remained resilient, even as the population has declined. With continued moderate growth expected in both home prices and rents, Hutchinson appears poised to remain an attractive option for both homeowners and renters in the coming years.
