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Homeownership Decline and Rising Values in Atlantic, Iowa: A Decade of Housing Market Shifts
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
Atlantic, Iowa, a small Midwestern city with approximately 7,100 residents as of 2022, has experienced significant changes in its housing market over the past decade. The city has witnessed a gradual decrease in homeownership rates alongside fluctuations in average home prices and rent costs.
From 2013 to 2020, Atlantic's homeownership rate declined steadily, dropping from 68% to 62%. During this same period, average home prices showed a general upward trend. In 2015, the average home price was $99,063, which increased to $111,074 by 2020, representing a 12% rise over five years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends. Between 2013 and 2016, interest rates remained extremely low, ranging from 0.1% to 0.4%. During this time, homeownership rates in Atlantic declined slightly from 68% to 65%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, the homeownership rate stabilized around 64%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership, although local factors also influence these patterns.
Renter percentages in Atlantic have correspondingly increased from 32% in 2013 to 38% in 2020. Average rent prices showed significant volatility during this period. In 2013, the average rent was $754, which rose sharply to $1,203 by 2018, a 59.5% increase. However, there was a notable decrease in average rent to $956 in 2020 and further to $715 in 2022. This recent decline in rent prices, despite the increase in renter percentages, could be attributed to various factors including changes in local economic conditions or housing supply.
In 2023 and 2024, Atlantic's housing market continued to evolve. The average home price reached $140,521 in 2023 and further increased to $144,815 in 2024, showing a steady upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in Atlantic may continue to rise moderately over the next five years, potentially reaching around $160,000 by 2029. Rent prices, which have shown volatility in recent years, are expected to stabilize and potentially see modest increases, possibly reaching an average of $800-$850 per month in the same timeframe.
In summary, Atlantic has experienced a gradual shift towards more renters and fewer homeowners over the past decade, accompanied by generally rising home prices and fluctuating rent costs. The recent sharp increase in interest rates, combined with the steady rise in home prices, may continue to influence homeownership rates and rental market dynamics in the coming years.
