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Jonesboro's Rising Home Values and Ownership Rates: A Decade of Growth in Arkansas' Agricultural Hub
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Jonesboro, Arkansas, is a vibrant city known for its rich agricultural heritage and as the home of Arkansas State University. Over the past decade, Jonesboro has experienced significant growth, with its population increasing from 67,486 in 2010 to 79,884 in 2022. This growth has been accompanied by notable shifts in homeownership rates and housing prices, reflecting the city's evolving real estate landscape.
The homeownership rate in Jonesboro has shown an interesting trend over the years. In 2013, the homeownership rate stood at 48%. It then fluctuated between 50% and 53% from 2014 to 2019, before experiencing a significant increase to 56% in 2020 and reaching 57% in 2022. This upward trend in homeownership coincided with a steady rise in average home prices. In 2013, the average home price was $133,218, which increased to $205,786 by 2022, representing a 54.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in Jonesboro reveals some interesting patterns. As interest rates remained low between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates initially fluctuated but then stabilized around 51-52%. When interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates remained relatively stable. However, the sharp drop in interest rates in 2020 to 0.38% coincided with a notable increase in homeownership to 56%, suggesting that lower interest rates may have encouraged more people to buy homes.
Renter percentages and average rent prices in Jonesboro have also shown notable trends. The percentage of renters decreased from 52% in 2013 to 43% in 2022. Despite this decrease in the renter population, average rent prices have consistently increased. In 2013, the average rent was $632, which rose to $864 by 2022, representing a 36.7% increase. This trend suggests that even as more residents transitioned to homeownership, demand for rental properties remained strong, possibly due to the growing population and the influx of students to Arkansas State University.
In 2023 and 2024, Jonesboro's real estate market continued to evolve. The average home price in 2023 reached $213,118, a 3.6% increase from 2022. In 2024, it further increased to $215,493. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-interest environment of previous years.
Looking ahead, based on the historical trends and current market conditions, we can project the following 5-year trends for Jonesboro: Average home prices are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might see prices reaching around $240,000 to $250,000 by 2029. Average rent prices are expected to maintain their upward trend, potentially reaching $950 to $1,000 per month by 2029, driven by ongoing population growth and demand for rental properties.
In summary, Jonesboro's real estate market has demonstrated resilience and growth over the past decade. The city has seen a notable increase in homeownership rates, particularly since 2020, alongside consistent growth in both average home prices and rent prices. The recent rise in interest rates may impact future trends, potentially moderating the pace of home price increases and influencing the balance between homeownership and renting in the coming years.
