Loading Content...
Lake City, Arkansas: Rising Home Values and Ownership Rates in a Small City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lake City, Arkansas, is a small but growing community located in Craighead County. Over the past decade, this city has experienced notable fluctuations in its homeownership rates and housing market dynamics. The overall trend shows a slight increase in homeownership, with average home prices steadily rising and average rent prices showing moderate growth.
From 2013 to 2022, Lake City's homeownership rate increased from 70% to 72%. During this period, average home prices saw significant growth, rising from $78,458 in 2013 to $134,251 in 2022, representing a 71% increase. This upward trend in homeownership and home prices suggests a growing preference for property ownership in the area, possibly driven by factors such as community development and economic opportunities.
The relationship between federal interest rates and homeownership rates in Lake City shows some correlation. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates fluctuated between 66% and 70%. However, when interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates stabilized and even increased slightly, reaching 73% by 2019. This trend suggests that while interest rates play a role, other local factors may have a stronger influence on homeownership decisions in Lake City.
Renter percentages in Lake City have shown a slight overall decrease, from 30% in 2013 to 28% in 2022. Average rent prices, however, have increased during this period. In 2013, the average rent was $725, which rose to $836 by 2022, an increase of about 15%. Interestingly, the city's population fluctuated during this time, peaking at 3,227 in 2016 before settling at 2,896 in 2022. These trends suggest that while the rental market has become slightly more expensive, it has not significantly impacted the overall proportion of renters in the community.
Looking at the most recent data, average home prices in Lake City continued their upward trajectory, reaching $146,912 in 2023 and $152,543 in 2024. This represents a further increase of 13.6% from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests a robust local housing market with sustained demand.
Applying predictive models to forecast the next five years, we can anticipate that average home prices in Lake City will likely continue to rise, albeit potentially at a more moderate pace due to higher interest rates. Based on historical trends, we might expect average home prices to reach approximately $175,000 to $185,000 by 2029. Average rent prices are also projected to increase, potentially reaching around $900 to $950 per month in the same timeframe.
In summary, Lake City has demonstrated a trend towards increased homeownership and rising property values over the past decade. The resilience of the housing market, even in the face of rising interest rates, suggests a strong local economy and attractive living conditions. While the rental market has seen moderate growth, it has not significantly altered the balance between owners and renters in the community. As Lake City continues to evolve, these housing trends will play a crucial role in shaping its demographic and economic landscape in the coming years.
