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Lansing Home Values Double: Capital City's Housing Market Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lansing, the capital city of Michigan, is a vibrant urban center known for its rich history and diverse community. Located in the heart of the state, Lansing has experienced notable shifts in its housing market over the past decade. The city has seen a gradual increase in homeownership rates, accompanied by significant growth in average home prices and average rent prices.
From 2013 to 2022, Lansing experienced a steady rise in homeownership rates. In 2013, 47% of residents owned their homes, while by 2022, this figure had increased to 56%. This 9 percentage point increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price in Lansing was $64,976, but by 2022, it had more than doubled to $138,037. This correlation suggests that as home values appreciated, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision.
The relationship between federal interest rates and homeownership rates in Lansing follows a generally expected pattern. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates increased from 47% to 50%. As interest rates began to rise more significantly from 2017 onwards, the growth in homeownership slowed but still continued, reaching 56% by 2022 when the federal interest rate was 1.68%. This trend indicates that while lower interest rates likely encouraged homeownership, other factors such as local economic conditions and housing market dynamics also played a role in Lansing's increasing homeownership rates.
Conversely, the percentage of renters in Lansing decreased from 53% in 2013 to 44% in 2022. Despite this decline, average rent prices showed an upward trend. In 2013, the average rent was $749, which increased to $899 by 2022, representing a 20% rise over the decade. This increase in rent prices, coupled with the decreasing proportion of renters, suggests a tightening rental market in Lansing. The city's population fluctuated during this period, peaking at 117,400 in 2016 before settling at 112,963 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Lansing's housing market continued its upward trajectory. The average home price reached $144,104 in 2023 and further increased to $151,715 in 2024, representing a 9.9% increase over two years. This growth occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, indicating strong underlying demand in the Lansing housing market.
Looking ahead, based on the observed trends, it's projected that average home prices in Lansing will continue to rise over the next five years, potentially reaching around $180,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In summary, Lansing has witnessed a significant shift towards homeownership over the past decade, accompanied by substantial increases in both average home prices and average rent prices. The city's housing market has shown resilience, with continued growth even in the face of rising interest rates. These trends suggest a robust and dynamic real estate landscape in Lansing, with potential for further appreciation in both the homeownership and rental sectors in the coming years.
