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Jerome, Idaho: Rising Home Values and Ownership in the Magic Valley
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
Jerome, located in Idaho, is a vibrant community that has experienced significant demographic and housing market changes over the past decade. The city has seen fluctuations in homeownership rates, alongside notable increases in both average home prices and average rent prices. This analysis will explore these trends and their interrelationships.
Homeownership rates in Jerome have shown some variability over the years. In 2013, the homeownership rate stood at 65%, but by 2018, it had decreased to 58%. However, there has been a recent uptick, with homeownership reaching 70% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $139,335, and it has since experienced a significant increase, reaching $365,069 in 2022. This represents a substantial 162% increase over nine years, indicating a robust appreciation in the local real estate market.
The relationship between federal interest rates and homeownership rates in Jerome shows some interesting patterns. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 63-65%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a noticeable dip in homeownership rates, reaching a low of 58% in 2018. However, despite the interest rate spike to 5.02% in 2023, homeownership rates have rebounded strongly, reaching 70% in 2022. This suggests that other local factors may be influencing homeownership decisions in Jerome beyond just interest rates.
Rental trends in Jerome have also shown notable changes. The percentage of renters increased from 35% in 2013 to a peak of 42% in 2018, before declining to 30% in 2022. Average rent prices have generally trended upward, rising from $776 in 2013 to $809 in 2021, before slightly decreasing to $752 in 2022. The city's population growth, from 12,676 in 2013 to 14,014 in 2022, may have contributed to the overall upward pressure on rent prices, despite the recent slight decline.
Looking at the most recent data, average home prices in Jerome reached $364,550 in 2023 and increased slightly to $370,480 in 2024. This represents a modest growth of 1.6% from 2023 to 2024, indicating a stabilization in the housing market after the rapid increases seen in previous years. The federal interest rate stood at 5.02% in 2023 and increased to 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and average rent prices in Jerome, albeit at a more moderate pace compared to the rapid increases seen in recent years. Average home prices could potentially reach around $400,000 to $425,000 by 2029, while average rent prices might increase to the $850-$900 range.
In summary, Jerome has experienced significant changes in its housing market over the past decade. The most notable trends include a recent surge in homeownership rates, substantial appreciation in average home prices, and generally increasing average rent prices. These trends have occurred against a backdrop of population growth and fluctuating interest rates. As the city continues to evolve, it will be crucial to monitor these housing market dynamics and their impact on the local community.
