Federal interest rates have played a role in shaping homeownership trends in La Crosse. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership rates in La Crosse increased from 70% to 76%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, a gradual decline in homeownership rates in La Crosse was observed.

The rental market in La Crosse has also seen notable changes. The percentage of renters decreased from 30% in 2013 to 21% in 2018, before increasing again to 29% by 2022. Average rent prices have shown an overall upward trend during this period, rising from $633 in 2013 to $753 in 2018, then adjusting to $645 in 2022. The fluctuation in rent prices does not directly correlate with the changes in the renter population, suggesting other factors such as local economic conditions or housing supply may be influencing these trends.

Recent data shows that the average home price in La Crosse slightly decreased from $76,887 in 2022 to $76,589 in 2023, before rising again to $77,554 in 2024, representing a modest 1.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in La Crosse.

Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in La Crosse will continue to rise moderately, potentially reaching around $85,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $800 per month within the next five years. However, these projections are subject to various economic factors and local market conditions.

In summary, La Crosse has maintained a relatively high rate of homeownership despite fluctuations over the past decade. The city has experienced significant growth in average home prices, particularly from 2016 to 2022. The rental market has seen both increases and decreases in the renter population, with average rent prices showing an overall upward trend. Recent increases in federal interest rates may impact future homeownership rates and housing affordability in La Crosse. As the city moves forward, balancing housing affordability with market growth will be crucial for maintaining a diverse and stable housing market.