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Lake City, Georgia: Soaring 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
Lake City, Georgia, is a small city located in Clayton County, just southeast of Atlanta. With a population of 5,089 in 2022 and covering an area of 1.86 square miles, it offers a suburban atmosphere with close proximity to urban amenities. Over the past decade, Lake City has experienced notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Lake City has remained relatively stable, fluctuating between 54% and 60% from 2013 to 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $48,058, which steadily increased to $194,689 by 2022, representing a substantial 305% increase over nine years. This rise in home prices, however, has not led to a proportional decrease in homeownership rates, suggesting that other factors, such as income growth or favorable mortgage terms, may have helped maintain homeownership levels.
Federal interest rates have played a crucial role in shaping homeownership trends in Lake City. From 2013 to 2016, interest rates remained exceptionally low, ranging from 0.09% to 0.4%. During this period, homeownership rates in Lake City increased from 55% to 58%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to climb, reaching 60% in 2018. This suggests that while low interest rates generally encourage homeownership, other local factors may have also contributed to the city's homeownership trends.
Renter percentages in Lake City have shown a slight decline over the years, from 44% in 2014 to 43% in 2022. Interestingly, average rent prices have remained relatively stable during this period. In 2013, the average rent was $1,021, which increased to $1,090 by 2017 but then decreased to $1,021 again in 2022. This stability in rent prices, coupled with the city's population growth from 4,410 in 2013 to 5,089 in 2022, suggests a balanced rental market that has managed to accommodate increased demand without significant price inflation.
In 2023 and 2024, Lake City's housing market continued its upward trajectory. The average home price reached $205,060 in 2023 and further increased to $214,073 in 2024, representing a 4.4% year-over-year growth. This growth occurred despite the Federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in the previous decade.
Looking ahead, based on the historical data and current trends, we can forecast continued growth in average home prices for Lake City over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could potentially reach around $250,000 by 2029. Rent prices, which have shown resilience to market fluctuations, are likely to see modest increases, potentially reaching an average of $1,150 to $1,200 per month by 2029.
In summary, Lake City has demonstrated a resilient housing market characterized by steadily increasing home values, stable homeownership rates, and consistent rental prices. The city's ability to maintain a balance between ownership and rental markets, even in the face of significant home price appreciation, suggests a healthy and diverse housing ecosystem. As Lake City continues to grow, it will be important to monitor how these trends evolve, particularly in response to broader economic factors and local development initiatives.
