As homeownership rates decreased, the percentage of renters in Laurel increased from 20% in 2013 to 29% in 2022. Average rent prices have shown volatility during this period, peaking at $1,246 in 2016 before declining to $947 in 2022, a 24% decrease. This trend suggests that while more residents are renting, the rental market has become relatively more affordable in recent years. The city's growing population, which increased from 10,356 in 2010 to 11,739 in 2022, may have influenced the demand for rental properties.

In 2023 and 2024, Laurel's housing market continued its upward trajectory. The average home price reached $371,309 in 2023 and further increased to $387,276 in 2024, representing a 5.1% and 4.3% year-over-year growth, respectively. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.

Looking ahead, predictive models suggest that average home prices in Laurel may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices, which have shown a decreasing trend in recent years, may stabilize or experience modest increases as the rental market adjusts to the city's growing population and housing demand.

In summary, Laurel has experienced a gradual shift towards a higher proportion of renters, driven by rising home prices that have outpaced the benefits of historically low interest rates. The recent sharp increase in interest rates, coupled with consistently rising home prices, may further challenge affordability for potential homebuyers. Meanwhile, the rental market has become more competitive, with decreasing average rents despite increased demand. These trends highlight the dynamic nature of Laurel's housing market and the ongoing adjustments in response to economic factors and population growth.