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Houston, Minnesota: Stable Homeownership Amidst Rising Home Values
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
Houston, Minnesota is a small city with a population of 2,466 as of 2022. Located in Houston County, this charming community has experienced relatively stable homeownership rates and gradual increases in average home prices over the past decade. The city has maintained a high percentage of owner-occupied housing units, reflecting a strong preference for homeownership among its residents.
From 2013 to 2022, Houston's homeownership rate fluctuated between 79% and 84%. During this period, average home prices showed a consistent upward trend. In 2013, the average home price was $153,440, which steadily increased to $270,588 by 2022, representing a significant 76% growth over nine years. This trend suggests a positive correlation between rising home values and sustained high homeownership rates in the city.
Federal interest rates have played a role in homeownership trends in Houston. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.40%), homeownership rates remained high at 80-83%. As interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), there was a slight dip in homeownership to 79%. However, when rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rebounded to 81% and 83%, demonstrating the influence of favorable financing conditions on homebuying decisions.
Renter percentages in Houston have remained relatively low, fluctuating between 16% and 21% from 2013 to 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $706, which increased to $782 in 2015 before declining to $643 in 2019. By 2022, average rent had risen to $818, representing a 15.9% increase from 2013. The modest population changes during this period (2,594 in 2013 to 2,466 in 2022) suggest that rent price fluctuations were likely influenced by factors other than significant population shifts.
In 2023, the average home price in Houston reached $295,132, a 9.1% increase from 2022, while federal interest rates rose to 5.02%. As of 2024, the average home price has further increased to $302,511, and interest rates have slightly risen to 5.33%. These figures indicate a continuing trend of rising home values despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Houston may continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. These projections assume continued economic stability and gradual population growth in the area.
In summary, Houston, Minnesota has maintained a strong homeownership culture despite rising home prices. The city's housing market has shown resilience, with consistent growth in property values and a stable high rate of owner-occupied homes. The relationship between federal interest rates and homeownership rates demonstrates the impact of financing costs on housing decisions. While the rental market has experienced some fluctuations, it remains a smaller segment of Houston's housing landscape.
