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Kuna, Idaho: Rising Home Values and Strong Ownership in a Growing City
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
Kuna, Idaho, is a rapidly growing city located in Ada County, known for its small-town charm and proximity to Boise. Over the past decade, Kuna has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting its evolving real estate landscape.
The homeownership rate in Kuna has shown remarkable stability and growth, increasing from 81% in 2013 to 85% in 2022. This trend coincides with a substantial rise in average home prices, which grew from $144,626 in 2010 to $485,732 in 2022, representing a 236% increase over 12 years. The correlation between rising homeownership and increasing home prices suggests a strong demand for housing in Kuna, likely driven by factors such as population growth and the city's desirability as a residential area.
Federal interest rates have played a significant role in shaping homeownership trends in Kuna. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. This environment of affordable financing likely contributed to the high and increasing homeownership rates observed in Kuna during this time. For instance, as interest rates remained low at 0.38% in 2020 and 0.08% in 2021, homeownership in Kuna reached 82% and 83% respectively, indicating a positive relationship between low interest rates and homeownership.
Renter percentages in Kuna have remained relatively low, fluctuating between 14% and 18% from 2013 to 2022. Despite this, average rent prices have shown a steady increase, rising from $1,168 in 2013 to $1,277 in 2022, a 9.3% increase over nine years. This modest growth in rent prices, compared to the more dramatic rise in home prices, may reflect the city's focus on homeownership and limited rental inventory. The population growth from 26,462 in 2010 to 38,722 in 2022 likely contributed to increased demand for both owned and rented housing, supporting the upward trend in both home prices and rents.
In 2023 and 2024, Kuna's real estate market experienced a significant shift. Average home prices decreased from the 2022 peak of $485,732 to $435,062 in 2023, and then slightly increased to $442,123 in 2024. This adjustment coincided with a sharp rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the previous decade's low rates.
Looking ahead, predictive models suggest that Kuna's average home prices may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are expected to follow a similar trend, with steady but modest increases. These projections are based on the city's continued population growth, its attractiveness as a residential area, and the potential stabilization of interest rates.
In summary, Kuna has demonstrated a strong trend towards homeownership, supported by historically low interest rates and rapidly appreciating home values. The recent market adjustment and rising interest rates mark a new phase in Kuna's real estate landscape, potentially leading to a more balanced market with moderate growth in both home prices and rents in the coming years.
