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Jeffersonville, Kentucky: Steady Home Values and High Ownership Rates Amidst Market Fluctuations
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
Jeffersonville, a small city in Kentucky, has experienced notable fluctuations in its housing market over the past decade. The city has maintained a strong homeownership rate, with average home prices showing a steady upward trend. Meanwhile, rental markets have seen more variable patterns in both occupancy rates and average rent prices.
Homeownership rates in Jeffersonville have remained relatively stable, ranging from 76% to 83% between 2013 and 2022. During this period, average home prices have shown a consistent upward trend. In 2012, the average home price was $83,687, which increased to $165,724 by 2022, representing a substantial 98% growth over a decade. This rise in home values occurred alongside a generally stable homeownership rate, suggesting that Jeffersonville residents have maintained their ability to purchase homes despite increasing prices.
The relationship between federal interest rates and homeownership rates in Jeffersonville appears to follow established trends. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates held steady at around 76-79%. The slight increase in interest rates to 1.83% by 2018 coincided with a minor dip in homeownership to 76%. However, as interest rates dropped again to 0.38% in 2020, homeownership rebounded to 81%, demonstrating how lower interest rates can encourage home buying.
Renter percentages in Jeffersonville have fluctuated between 17% and 24% from 2013 to 2022. Average rent prices have shown an overall upward trend, albeit with some variability. In 2013, the average rent was $488, which increased to $850 by 2022, representing a 74% increase. Notably, there was a significant jump in average rent from $703 in 2021 to $850 in 2022, a 21% increase in a single year. This sharp rise in rent coincided with a slight decrease in the renter population from 21% to 20%, possibly indicating that some renters may have been priced out of the market or chose to become homeowners.
In 2023 and 2024, Jeffersonville's housing market continued to evolve. The average home price reached $171,381 in 2023 and further increased to $174,718 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market dynamics.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Jeffersonville may continue to rise over the next five years, potentially reaching around $200,000 by 2029. Average rent prices could also see continued growth, possibly surpassing $1,000 per month within the same timeframe. However, the pace of these increases may be moderated by factors such as interest rates and overall economic conditions.
In summary, Jeffersonville's housing market has demonstrated resilience and growth over the past decade. The city has maintained a high rate of homeownership despite rising home prices, while the rental market has seen significant price increases. The relationship between interest rates and homeownership rates aligns with expected patterns, and recent data suggests a continuing trend of appreciation in both home values and rental prices.
