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Kimberly, Idaho: High Homeownership and Rising Home Values Amidst Population Growth
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
Kimberly, Idaho, a small city in the southern part of the state, has undergone significant changes in its housing market over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in Kimberly, providing insights into the city's evolving real estate landscape.
Homeownership rates in Kimberly have seen a slight increase, rising from 83% in 2013 to 84% in 2022. This trend has occurred alongside a substantial increase in average home prices, which have more than doubled from $167,391 in 2013 to $435,285 in 2022. The relationship between homeownership rates and average home prices appears complex, with homeownership remaining relatively stable despite the significant increase in housing costs.
Federal interest rates have had a noticeable impact on homeownership in Kimberly. As interest rates remained low, particularly between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates stayed consistently high, hovering around 83-88%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise in 2022 to 1.68%, Kimberly's homeownership rate remained strong at 84%.
Renter percentages in Kimberly have fluctuated over the years, ranging from a low of 12% in 2018 and 2021 to a high of 19% in 2016. Interestingly, average rent prices have not shown a consistent upward trend despite the city's population growth. In 2013, the average rent was $856, peaking at $1,172 in 2016 before declining to $853 in 2022. This fluctuation in rent prices, coupled with the city's population increase from 4,129 in 2013 to 5,399 in 2022, suggests a complex rental market influenced by factors beyond simple supply and demand.
Recent data shows that average home prices in Kimberly experienced a slight decrease from $435,285 in 2022 to $423,727 in 2023, followed by a marginal increase to $424,952 in 2024. This recent stabilization comes after years of rapid growth. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the city.
Predictive models forecasting 5-year trends anticipate that average home prices in Kimberly may continue to rise, albeit at a more moderate pace than seen in the past decade. The recent stabilization suggests a potential cooling of the market, but ongoing population growth could maintain upward pressure on prices. Average rent prices are expected to remain relatively stable or see modest increases, influenced by the city's high homeownership rate and the historical fluctuations in the rental market.
In summary, Kimberly has demonstrated a robust housing market characterized by high homeownership rates and significant appreciation in average home values. The city has maintained a strong preference for homeownership despite rising housing costs, possibly supported by historically low interest rates. The rental market has shown more variability, with fluctuating prices and occupancy rates. As Kimberly continues to grow, balancing housing affordability with homeownership opportunities will likely be a key challenge for the city's future development.
